Here are the:
Top 10 reasons to have a hiring system
Any conversation about the cost of hiring or mis-hiring is misleading. The true cost of each employee that is added or replaced is buried in many different departments' budgets. The full cost is on many obscure lines of the P and L.
For example, advertising costs may be in the HR budget, …management at the department level is a part of the manager's salary, …new employee orientation, in the HR or training department… training on internal systems/procedures in the local department or training department… remedial training-who knows?
Get the picture? Many times HR or training departments do not back-bill the user departments. And therefore the cost of hiring is hidden.
Having a hiring system will absolutely reduce these hidden costs. I guarantee it.
1. You will make better hires.
Following a system (read: recipe-as in how to make a favorite BBQ sauce) almost any system will allow you to be more consistent across an organization or just when you do it repeatedly. Having steps to follow allow you to be systematic first. Then after the system has become comfortable, you can be creative. Creativity should follow on the heals of a refined, honed, productive system.
2. You will spend less time hiring.
Depending on how rigorous your current hiring system is you (collectively) may be spending 20-40 man-hours vetting a new hire. And if the hire does not work out, you get to do it all over again. Too large of an expenditure to make a mistake. You can better use these resources elsewhere.
3. You will spend less time training.
Training new hires on your internal systems and policies is less profitable than skill development to create more value whether it is for the shareholders or customers. Every new hire consumes training resources that are better utilized elsewhere.
4. You will spend less money hiring.
Depending on the research that you do, a new hire can cost anywhere from $5,000 to 20 times annual salary. Think what you can do with that money on other initiatives that will grow sales and profits.
5. You will be more consistent during the interview process.
A good hiring system should include standardized processes including asking all candidates a similar set of questions. Certainly you can delve into areas that show up on assessments, background checks and credit reports.
The questions asked each candidate in each job title can and should be standardized. Treating two candidates for the same position differently can land you in trouble with the federal government for alleged discrimination.
6. You will reduce your liability.
If you are inconsistent across the company with the hiring process including but not limited to assessments and/or tests given, depth of background checks run and interview questions asked, you liability can be substantial.
7. You will duplicate hiring successes.
Quite often you make good hires. When you do, wouldn't it be great if you could replicate that success? You can with a standardized system or process.
8. You will have a better job fit.
Research has shown over and over that each job (if it could speak) would be better performed by candidates that possess certain behavioral traits, hard and soft skills and motivations.
Not all jobs are created equally nor are all people. Match the person to total requirements of the job. Not just anyone who can fog a mirror.
9. You will have better teamwork.
On cross-functional teams, multiple personalities are a good thing. Within a job class there are numerous reasons to have most of the job incumbents hold the traits of the most successful performers.
Several projects that we have completed show that top performers in a job share more traits that you might expect and have dramatically higher performance and less need for management. Always a good thing from the managers point of view.
10. You will spend more time helping your better performers rather than trying to get slackers to perform.
The 80/20 rule in alive and well with management. Most managers will tell you that they spend 80% of their time on 20% of the employees who are not making it. Why hire them in the first place? If hiring is better done, managers can spend time boosting the performance of top performers, not on people that should never have been hired for the job they currently hold.
It does not follow that the person should not have been hired for some job in the company, just not for the one they hold today.
To your continued success,
Reg Gupton
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