The Cost of Wrong Hire: Can it be Avoided?
Robert Half, a staffing firm in D.C. reported that 61% of senior hiring managers from companies with 20 or more employees confessed that the cost of bad hiring is more drastic and more expensive than it was before the coronavirus pandemic.
One of the fundamental flaws in the hiring process is recruitment managers becoming obsessed with the candidate’s experience and past experience in matching the job description of the profile they are trying to fill.
Recruitment consultancies and staffing experts recommend having other team members (from the department that requires the new hire) in the recruitment process. The advice also extends to the concept of hiring a candidate first on contract and eventually converting that contract into permanent employment.
This way, all the costs involved in setting up accounts, technical, IT, and payroll infrastructure can be avoided, should the company feel the new hire is not a good fit for the company in the long run.
Poor hires also drain company resources when companies are trying to scale.
In a recent LeadershipIQ’s landmark study (a study based on 20,000 new hires 1,4000 HR executives), it was discovered that 46% of new hires would fail in 18 months. Note: The report highlighted that these “failed” hires we’re not limited to ‘terminated’ employees, but employees whom the companies would never want to hire again.
The same study also reveals that 89% of hiring failures are the result of not hiring for attitude. This again ties back to recruitment managers obsessing over candidates’ work experience and merely wanting to match the skills of the candidate on the resume to the skills posted in the job description.
In another study ‘Words that cost you the job interview’ (from the same company as above), it was discovered that high performer answers contained 28% more words that describe positive emotions such as ‘happy’, ‘thrilled’, and ‘excited’, whereas low performer answers contained 92% more words that contained negative emotions such as ‘angry’, ‘aggravated’, and ‘pessimistic’.
Draup helps organizations reduce hiring costs by looking beyond conventional skillsets and trademark pedigree traits to address deeper talent characteristics.
Draup’s proprietary AI/Big Data frameworks evaluate characteristics across industries, companies, locations, and individuals to build critical insights.
Draup’s talent intelligence platform analyzes personality traits, technology skills, soft skills, adjacent skills, employee information, engagement guidelines, and a hiring opportunity index to suggest candidates for a profile. Top Fortune 500 companies leverage Drape to successfully identify, recruit, and hire high-quality relevant talent to reduce hiring costs and prevent costs incurred due to bad hires.