Guest Post

Written By:  Ron Guest, Senior Partner, at TwoGreysuits.com
Edited by: Puneet Dutt

Wondering how to save more money and time in your business?  Ever consider re-thinking your HR strategy?  As management consultants and experienced recruiters we are often called in, especially after a company’s recruitment exercise doesn’t work out. Job postings, interviewing, and recruitment firms all cost you a lot of time, and money.  The hiring mistakes company’s make generally fall within five categories.  These are the 5 Most Common Hiring Mistakes You Don’t Want To Make.

1. Too narrow scope in sourcing the market -  Often because of time restraints, companies end up choosing from a small candidate source.  Or the process gets dragged out because of the lack of qualified candidates. Even if you are doing everything else right, selecting from a small candidate pool is very risky. When hiring a candidate choose quality, and with a timeliness perspective in mind.

An effective recruitment campaign should include candidates from:

• Employee referrals

• Job board advertising

• Industry networking

• Trade association advertising

• Local advertising candidates

Another option, is a professional recruitment firm.  Firms always have their own database of pre-qualified candidates which ensure quality. Additionally if you know of a good person in the industry, try directly contacting them, since sourcing “passive” candidates is valuable. (Or this is often easier for a 3rd party to do.)

2. Skill Set of the Hiring Manager – Often, a hiring manager will focus more heavily on the candidates job knowledge, and not enough on the behavioural understanding.   Behaviour goes a long way in determining the best fit.

In our experience we see “behavioural poor fit” as the reason behind 90% of terminations.  Even when the person is actually good at their job! Being skilled in behavioural interviewing is critically important. Learning to do this properly is explained in the recruitment module on the Two Grey Suits website.

3. Poor or no reference checking – It is important to know how to conduct a detailed reference check. A proper reference check verifies job skills, and the behavioural fit in which the person operates in. For several detailed reference checking forms please refer to the recruitment module in the HR Power Center at TwoGreySuits.com.

4. Lack of orientation or on boarding program – Too often new hires are not properly oriented or introduced to the company.  It is important to explain what is going on in the company and what is required of them.  Hiring managers are often so relieved when a new person is onboard, that they let them find their own way.  This is a poor signal to the new hire.

It is said that without proper orientation a candidate usually leaves within 3-6 months of being hired. Have a plan in place for the first 3-4 weeks, and schedule in regular check-ins with the boss. There is no substitute for this.

5. Not understanding the cost/benefit in the recruitment process – Sourcing candidates can be very time consuming and also very expensive. Being cheap in this department will affect your quality of hire. Additionally, getting locked in on a certain compensation or salary number can place you at a disadvantage. Sometimes, by paying a few dollars more, you open up a vastly different candidate pool. However, the market will tell you what to pay in most cases.

Also, compensation is not always the most important thing to candidates. Other factors that may also be important are:

• Benefits

• Hours of work

• Telecommuting options

• Working from home

• Daycare availability

• Public transit availability

• Career progression

• Vacation time

If your benefits plan is outdated, it will affect your ability to hire qualified candidates in the marketplace. The decision to save a few thousand dollars in the recruitment process, can have lasting negative consequences. That can lead to less than average performers working in a business long term. The payback for hiring a high performing individual far outweighs any ‘savings’ realized in a recruitment campaign.

So remember to keep these HR tips in mind, the next time you are hiring a candidate.  It could save you a lot of time and money in the long run.