And I can understand your point of view. We are not an enterprise, not even close. But the experience that we as a smaller firm go through while hiring candidate is nearly a roller-coaster ride and we observe, experience pretty closely. Now the things we have learned are surely something managers-in-enterprises should think about and I feel, you will be able to relate it well.
Just look at the number of people involved in the hiring and on-boarding process. It is first the portfolio manager (or department head) who would approve a hiring requirement, a project manager or concerned manager who needs a resource in his team, HR recruitment team, recruitment agency (or referrers), manager who conducts interview, administration who facilitate interview. Everyone involved in this process has to spend time on almost all probable and eligible candidates.
HR.com says it costs $7,000 to fill a position of a salaried employee, $10K to replace a mid-level manager, and $40K to replace an executive at senior position. So the cost of hiring is high, and I am not even talking about cost to hire right candidates.
Actually the list I mentioned above does not end there. Once employee is hired, HR and training department are tasked to on-board new hires/team members. Now think of the situation that you have not-so-right/fit guy working in your project team it could be dissatisfied customer, lost opportunities/sales, messed up project deliveries, divided project team (attributed to bad-hire him/herself).
Say-IT-Communication has estimated the negative RoI of hiring a bad candidate is - 298%
There is more. If you are to correct the situation and show doors to the not-so-right-guy, how other employees would react to this situation? They are more likely to have low morale. Once the unfit candidate is shown out-door, s/he may sign negative tunes about your organization.
As researched in a Harvard Business Review article, 80% of employee turnover is due to bad hiring decisions.
Also your company will have to consider Employment Termination and corresponding legal implication that may arise.
Another important aspect that many employer may not realize is, quite a few candidates aspire to work for biggies (Microsoft, GE, Google, alike) of their domain, locality. Thus they consider many other employers as a mid-way career choices.
No employer would like to be considered as a second/third choice of a candidate to join an organization. It is really important to filter-out such candidates not just to save on cost of hiring/firing but also to save your company's image from being considered as a stepping stone.
Another eventual result of such hiring you need to realize that, whether your organization has kind of become a training center, where candidates join to get trained and once they are ready to contribute, they leave for another job.
Now once we know what are pitfalls of hiring not-so-right-fit, we need to know how to set it right. Here are quick notes to correct the situation.
What you should be clear about - while hiring candidates or inducting someone in your project team.
Lets look at these points in next post about how difficult it is to hire right candidates and how to do it right.
Img Source: WaTips
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