I’ve heard it said before that if you end up with a bad employee, you’ve probably made a bad hiring decision. Now, please understand, I’m not excusing an employee’s poor work ethic or a “less than engaged” employee, but more often than not, there’s a good chance that person wasn’t the right fit in the first place.
Bad hiring decisions are costly. Beyond how an under-functioning employee affects team morale, workload, and deliverables productivity, the wrong hire also hits hard from a financial perspective. How costly? Take a look at these turnover costs as percentage of actual salary:
Position Type Percent of Annual Salary Entry-Level, Non-Skilled 30 – 50% Service/Production 40 – 70% Clerical/Administrative 50 – 80% Skilled Hourly 75 – 100% Professional 75 – 125% Technical 100 – 150% Supervisor 100 – 150%
In HR we use technology to help fine tune our hiring decisions today—everything from social scoring, and video interviewing, to people analytics. Yet, according to a recent FastCompany article, 95 percent of companies surveyed still admit to making bad hiring decisions, and 80 percent of employee turnover can be tracked back to hiring incorrectly.
How to Stop Your Bad Hiring Decisions
One issue that can lead…