How to Avoid Making Costly Mistakes with a Bad Hire
A 'bad hire' is a costly mistake to make for any organization, we explore how to avoid this mistake and strengthen your business.
Avoid the Costly Mistake of a 'Bad Hire' with these Three Steps
The impact of making a ‘bad hire’ can have a resounding effect on businesses performance and profitability. At a time of year when businesses are implementing and forward planning their talent decisions, understanding what makes a ‘bad hire’ and how you can avoid this route is essential.
Research shows that ‘up to 20 percent of new hires’ leave within the ‘first 45 days of their new role.’ (HR News) A ‘bad hire’ could be the result of a mismatch between job role and skill set, values that do not align between company environment / expectation vs personal values, or team fit.
There are also business factors that can lead to organisations making a negative hiring decision. Poor onboarding processes, lack of face-to-face interviews, and pressure to make quick hiring decisions due to time and budget demand. A bad hire is costly, estimated at three times higher than the salary paid, plus the impact a bad hire can have on team morale and performance.
How Can Organizations Avoid this Costly Mistake?
Use psychometrics - 34% of HR professionals cited psychometrics as an effective way to improve recruitment processes, by gaining insight into personality, aptitude, and behaviours required for their roles. Role assessment by Pearson provides a range of renowned assessment tools including the Watson-Glaser Critical Thinking Appraisal that can provide a granular view of each candidates' job fit and how they rank against other applicants who are being considered for the same position.
Skills-based hiring - avoid outdated proxies and look at recruiting based on skill-set - the competencies and skills essential to your role as opposed to credentials. This gives you a wider talent pool to choose from and helps you avoid overlooking valuable candidates. Built on the backbone of Pearson’s talent assessment library, Role Assessments will give you access to a customized battery of assessments based on each job role to measure cognitive, personality and language abilities.
Look at all your options - with skill-gaps having a significant impact on future business development, upskilling internal members of staff will help to protect your business. Identifying areas of concern and developing staff into new roles could help improve employee retention and avoid the possibility of making a ‘bad hire’ by mismatching skills and role requirements.
A bad hire is a costly mistake to make for any organisation, but by planning for your recruitment needs and investing in tools such as psychometrics and hiring solutions you can gain the insight needed to avoid this mistake and strengthen your business for the year ahead.
Unlock the Power of Psychometrics with Pearson TalentLens
With the right strategy and tools, you'll empower your talent acquisition teams to make the right hiring decisions. Want to see how Pearson TalentLens can work within your hiring process? Learn more about our talent assessment library or get in touch with us today to find out.