Why making the right hire is so important

Have you heard of this one? Supposedly one bad hiring costs the company Rs 20 lakhs.

http://www.hindustantimes.com/business-news/CorporateNews/One-bad-hiring-costs-Indian-companies-over-Rs-20-lakh-survey/Article1-1058966.aspx

While the corporate world is still divided as to the importance of having a good executive search firm, it is now proven what a bad hire can do to the financials of your company.

"As per the study conducted by global human resource consultancy CareerBuilder, 88% companies in Russia said they were affected by bad hiring last year, followed by 87% in Brazil and China and 84% in India.

The percentage of such companies in the US was much lower at 66%.

The study further said that three in every ten Indian companies (29%) reported that a single bad hire -- someone who turned out not to be a good fit for the job or did not perform well -- cost the company more than Rs. 20 lakh ($37,150) on an average.

In comparison, 27% of US employers reported that a single bad hire costs them more than $50,000"

Recently we were approached by an NBFC in Chennai, a start up firm, and in my meeting with them, their HR Head confided that they have been trying from some recruitment CV sites and some networking sites to get solutions to their hiring requirements, but after trying for over a year, the "proper fit" has eluded them. What they get instead is a landslide of resumes from candidates who are remotely connected with the industry, function or any JD mentioned. Usually they are not equipped with the experience, time or energy to sort through this bombardment of resumes.

While global search firms do come at a price, (which you are not paying for your linkedin hire, or for the person your in-house executive searched from monster.com), it is still an experienced search consultant who is equipped with the knowledge of how to use the tools of the trade best. 

"When you add up missed sales opportunities, strained client and employee relations, potential legal issues and resources to hire and train candidates, the cost can be considerable," said CareerBuilder CEO Matt Ferguson. "Employers are taking longer to extend offers post-recession as they assess whether a candidate really is the best fit for the job and their company culture," he added.

It has been seen that apart from poor performance, a hire becomes a failure when there is a skills mismatch. There might also be a culture difference. That is why the experience of a hiring manager is very important. If you are using external agencies for your hiring purposes here are the things to remember: 

• providing a clear job description, and stick to it. Take time to build the right job description. Many companies are not sure of their JD when they send it out to consultants and then keep changing with time. Try and avoid that scenario. It makes it difficult for everyone involved and is a waste of time for you, the consultant and the candidate being considered.
• meeting with the consultants to give an idea of the company culture
• being clear and precise in the hiring brief is very important
• spending time with the candidate, usually more than one meeting is necessary to even check the basic skills. Multi level meetings are required to understand the cultural background and attitude of a person
• checking soft skills like working in a team and attitude
• wooing the right candidate. It may translate to more money but the cost will be more than made up.

When it comes to hiring the right person, you need not leave anything to chance. A good agency and a good HR manager will ensure you get the right fit without having to swim through a sea of bad resumes and wasting any time.