Bad move. Very bad move.
You may understand your business, but when it comes to hiring, you’re probably just guessing. In point of fact, regular job interviews scarcely assess competence. They’re poor predictors of accomplishment, posting a 0.2 correlation with actual job success.
Hiring is high-stakes stuff. The cost of hiring one bad salesperson can run into the millions, factoring in not only salary and rehiring but also missed sales and lost clients.
The cure for bad hires is a scientific, three-part approach that makes hiring as standardized and objective as possible.
Here are the components:
- Behavioral interviewing, during which candidates field tough questions about how they’ve handled specific assignments and problems. Bluffing is difficult.
Example: “What were the sales margins, accounts payable, and inventory like at your previous job?”
All questions should be job-related, and every candidate should field the same questions. Interviewers need to take notes.
- Cognitive and personality tests. The first measures intellectual capacity. The second can measure candidates against your top performers. In effect, you can begin to approximate “cloning” your stars. Use both kinds of tests or a single test that combines the two.
Assessment results can be fascinating. Example: A trucking company was baffled about why some drivers who’d seemed perfectly qualified were turning up as rude, complaining, late or otherwise unproductive.
The company hired a research team that found two truck-driver profiles: Top performers on city routes were social and talkative with customers while picking up and delivering many times a day. The best long-haul truckers were quiet and introspective.
Facts in hand, the trucking company reduced its turnover to 22 percent, far below the 116 percent industry average.
- Real tasks approximating what they’d do on the job. In a two-hour test, a PR firm in Los Angeles asks would-be account reps to study a client and write a pitch. For executive candidates at Motorola, Aon Consulting designed a four-hour online exercise.
—Adapted from “The New Science of Hiring,” Stephanie Clifford, Inc.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7299/reduce-the-cost-amp-grief-of-bad-hires "
- Poor economy, new legal peril: Refusing to hire the unemployed
- Can we make this hire? Confidentiality agreement doesn't include a noncompete
- What's the difference between an independent contractor and an employee?
- Do applicants have to reveal disabilities during the hiring process?
- Class action could pair employees, contractors