Avoiding Bad Hires

The Harvard Business Review points out that as much as 80 percent of employee turnover is due to bad hiring decisions. And, with the average cost of hiring a new employee now exceeding $3,479 according to a 2012 study by Bersin & Associates, a leading research and advisory services firm in enterprise learning, talent management, talent acquisition, and strategic HR solutions, it just makes sense that hiring managers should work towards a common goal of no bad hires. That’s right – zero.

Bad hires not only contribute to high employee turnover, they are also responsible for incurring financial loss, negatively impacting employee morale and company image, and overall, being a drag on the economy at large. That’s a lot of undesirable impact resulting from a situation that may have been easily avoided in the first place.

So, to meet this goal of no bad hires, companies need to evaluate their tools. Are the right employment screening and assessment tools being used to identify the right people for the right jobs? It all begins by incorporating science and technology through predictive talent selection into your hiring process because really…who can afford to lose thousands of dollars in profit while putting so many other areas at risk?

People interacting with technology

In today’s age of technology, there’s really no excuse for a bad hire. By eliminating faulty systems and processes that rely solely on human decision-making skills, you can practically deep six bad hires altogether.

Greg Satell of Forbes.com says businesses often ignore big data at their own risk. He cited a study from the University of Pennsylvania and MIT researchers, who determined that data-driven companies perform five to six percent better than companies that don’t make data-driven decisions.

Big data has the ability to truly change the way companies think about employment. It can be used to find the best candidates, help candidates find the best jobs for their skills, and improve your company’s performance against competitors.

Employment assessment tools are the key to getting better hires through big data. For example, Chequed Suite is one of the most comprehensive predictive talent selection processes on the market today. It includes: assessment, interview, reference checking and analytics all together in one simple and easy-to-use user interface.

So, while the hiring process still requires that human touch, it’s only one aspect of building an actively-engaged workforce. Technology and tools can be used effectively throughout the hiring process to reduce, and ultimately eliminate, bad hires.

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