The Science of Hiring

7 09 2009

HiringEmployees

Before talking about new hires, let’s talk about the bad hires. I’m sure most business owners can attest to hiring at least one employee they later wished was never on their payroll. But hey, we all learn from our experiences right? And from this experience, it is worth acknowledging why that person was not a good fit for the position or company culture.

According to a survey conducted by an online payroll company, 12% of the business owners surveyed admitted that their bad hire cost their business over $10,000. But the cost of a bad hire isn’t purely financial, in terms of salary and benefits. The real cost includes factors such as reduced team productivity and missed client opportunities, not to mention the psychological impact on the leadership of the company. Hiring is a science, and it is worth learning in order to make solid employee choices for your business.

Right now, employers have the pick of the litter for qualified (or even over-qualified) candidates. But what processes can a company put in place to avoid a bad hire? In the aggregate, these five steps to an effective hiring practice are a good guide:

  1. Publicize the opening.
  2. Use a lawful employment application form.
  3. Systematize your hiring process.
  4. Conduct an employment interview.
  5. Reduce your legal risk by learning how to properly terminate an employee.

We all know that having standard hiring practices, that also address legal risks, are key to gaining a quality workforce. Actually implementing such a process is the hurdle. See below for a few tips to jump start your standardization practice:

Hiring Practices:

Legal Risks:

Ultimately, the science to your hiring practice is unique to your company in order to represent your business needs. Use the above links as a guide, but make sure your company’s personality is also reflected along the way. Finding the right candidate can easily feel like finding a needle in a haystack, but with a proper hiring practice in place – you’re well on your way to filtering out the right candidates for each position.

Photo courtesy of ProBlogger.

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6 06 2010
Hiring and Recruiting. « The Company Line: BLOG

[…] the right people for your business is crucial. I’ve previously written about the “Science of Hiring,” particularly the costs associated with a bad hire. Knowing when to hire and how to go about […]

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