Unless you live in the world of Talent Acquisition, when you’re hiring, it’s not something you're likely doing on any frequent basis. If you are, you’re either growing like crazy or you’re getting it painfully wrong. In either instance, it's important to take a structured approach to get these most important business decisions right, because...
Making the Wrong Hire Gets Expensive Quickly!
Without a structured interview process, statistically your "gut feel" will be right only about 20% of the time. Aside from the impact on team morale and your employer brand, the hard and soft costs of getting it wrong averages 1.5x to 4x the position salary, depending on how hard it is to find the available talent. For Executive level or very hard-to-find talent, the number can be as high as 10x!
So, imagine you're a company of 50 employees and you lose 10 employees in a year. Say those employees earn an average of $50,000/yr and have in-demand skills that conservatively put them in a 2x cost to the business:
$50,000 x 10 employees = $500,000 x 2 = $1M in one year!
Making the Right Hire Returns Dividends
When you get the hire right:
- Even a 10% improvement in quality can be as much as 100 times more impactful financially than a 10% cut in costs
- You're strengthening your Culture
- You will see higher productivity, happier employees and happy customers
- Your brand as an employer will develop and you'll build a reputation that will do the heavy-lifting to attract the best talent
If you take the search to a professional search firm it will increase your odds of getting it right, but it can still be expensive. Fees are typically of 25-30% of the first year's salary. So, if you were to replace just half of those hires through an agency ($50,000 x 25%), you're spending $62,500. There's a time and a place when it makes sense for the strategy to be external search, but it should not be the default strategy for the majority of hires.
The Reel Culture Way
First, clearly know who you are as a company--your Purpose/Mission, Core Values and Culture. Next, develop a structured approach to the interview to assess qualifications, engagement and fit.
Sounds simple? When you know how to approach it, yes, but it can often feel like you've stepped into an M.C. Escher drawing when you begin to try to sort out your Values from Core Competencies from Culture from Employee Experience.
Outcomes When you Engage with Reel Culture:
- Get it right more often than you get it wrong
- Articulate your Culture in an authentic and meaningful way to attract the right talent
- Avoid the trap of building a "just like me" Culture
- Prepare and build confidence across interview teams, providing a better candidate experience
- Confidently make an informed, objective hiring decision
- Identify those with high potential, “stars in the making,” instead of going after the same stars everyone else is (stars are few and far between and may not be able to replicate successes from past roles)
- Confidently invest in employees professional development and build meaningful relationships
- Protect from “adverse impact” (inadvertent discrimination)
- Nurture, sustain and scale your Culture
- If there are attributes you don’t like, build a plan to transform aspects of your Culture
- Reap the bottom line benefits of attracting, engaging and keeping the best talent for your company!