At some time, almost every company will have to figure it out. How do you find the ideal individual to hire? Who is the ideal match? It may appear to be a straightforward task, but consider this: half of all recruiting firms hire people who aren’t the appropriate fit or lack the necessary skill sets. And the cost of those blunders is enormous. So, what are the options?
We’ll look at how you should think about hiring in Geoff Smart and Randy Street’s book, Who: The A Method for Hiring. We’ll go over the thinking that has to be done before beginning the hiring process, and we’ll provide you a list of interview questions to use. You’ll be more than ready to find the proper “person” for your company in the end.
Hiring can be a pain in the neck. But what’s the big deal about finding the proper person the first time? You can always replace a new hire if she doesn’t work out, right? Well, here’s the truth: if you think hiring is a game of chance, you’re probably not familiar with the arduous initiation ceremony that is onboarding a new employee. Furthermore, hiring mistakes may be quite costly for businesses, and they occur considerably more frequently than they should.
According to the authors’ research, a typical hiring error costs a company almost fifteen times the employee’s monthly wage. Some of these costs are incurred as a result of the employee’s poor judgments, while others are incurred as a result of the effort required to terminate and replace him.
Consider the following scenario: you recruit a manager who earns $100,000 per month. If you make a poor selection, you might end up costing the organization up to $1.5 million! Clearly, hiring the incorrect individual is a costly error. Nonetheless, it occurs frequently. Most managers, according to management guru Peter Drucker, make at least half of their hiring decisions incorrectly.
However, this makes sense. Business people frequently lack the abilities required to make informed hiring decisions. As a result, people wind up depending on gut feeling rather than personal expertise. This approach is comparable to that of an inexperienced art critic whose comments to a work of art are restricted to “I like it” and “I don’t like it.” The issue is that art may be easily faked, and first impressions are frequently inaccurate. People who hire on instinct, like the rash and uneducated reviewer, can be duped by charming candidates who lack actual talent.
Managers may sometimes function as prosecutors, attempting to persuade candidates to make a mistake. As you’ll see, doing so will just put a potential hire on the defensive, preventing you from determining whether or not he has the necessary abilities for the job.
Would you consider remodeling your kitchen with an unlicensed contractor? Most likely not. After all, there’s no way of knowing if she’ll be able to finish the task. Similarly, you shouldn’t recruit anyone unless you know exactly what qualifications they’ll need to succeed. To do so, you must first define your hiring requirements.
Recruiters frequently neglect to clarify exactly what they’re searching for, which can cause the entire hiring process to fall apart. Indeed, knowing exactly what you want from the start is critical.
One of the authors recently worked for a large financial services company that was looking for a vice president of strategy and planning. The author began by inquiring of the management team about the new VP’s responsibilities.
His question generated a lively debate. One manager claimed that they required someone who could create a budget master plan, while another claimed that they required someone with a vision for new tactics and products. It was evident from away that the team didn’t agree on what they wanted, which is exactly what you want to avoid.
After all, if you don’t know who you want to hire, you’ll wind up with a generalist rather than a specialist. Hiring an all-around candidate is, in fact, one of the most prevalent hiring blunders. People are often captivated by such people’s broad ability, failing to inquire about critical and specific capabilities.
Consider the following scenario: you have a backlog in your business activities. Someone who can tighten up your operations and prune the old work is what you need. You speak with a capable, innovative, and charismatic business developer during interviews. She’d be a great candidate in another situation, but she’s not the proper fit for this one. Why?
While she may bring in more business for the company, this is exactly what you don’t want; additional business will add to your backlog, causing more operational delays and customer dissatisfaction. Smarts and intellect aren’t enough to become an excellent employee. She also needs social skills, which is something recruiters should bear in mind.
However, in order to genuinely ensure that new workers fit in, you must first understand your company’s culture. In fact, one-third of the CEOs examined by the writers for this book admitted to making major hiring blunders by overlooking the importance of cultural fit.
Define your company culture from the start to prevent making this mistake. Gather your executive team and ask them how they would describe the company’s environment. There’s no need to get too fancy; simple, off-the-cuff definitions will suffice.
However, finding a cultural fit may entail turning down people with significant talent. Remember that while a potential hire may be excellent at her job, she may not share your organization’s values, and your company culture is ultimately more essential.
The new employee, on the other hand, was not a team player. He was talented, but he was also arrogant, and he frequently made his coworkers feel inferior. His work approach had a severe impact on the team’s overall performance, and the CEO had no choice but to fire him.
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