Heads are nodding.
Some readers might say:
Others might think:
Well, there’s plenty more where those came from!
Still others might think:
We can train ‘em.
You give yourself and everyone in your organization a head start on reaching your goals if you hire the right people the first time.
Implicit in this step is you avoid hiring the wrong people any time, every time. How expensive can a bad hiring decision be for your company?
Dr. Brad Smart author of Topgrading: How Leading Companies Win by Hiring, Keeping and Coaching the Best Players and The Smart Interviewer: Tools and Techniques for Hiring the Best reports that...
Based on our studies, the average cost of a mis-hire can be six times the base salary for a sales rep, 15 times base salary for a manager, and as much as 27 times base salary for an executive.
For startups and smaller companies, for rapid-growth companies, hiring the right person is critical. There’s no extra cash lying around in some forgotten account. There’s only room to shine leaving no place to hide.
As companies grow, the tendency is to recognize the bureaucracy and not the person. That tendency contributes to employee engagement figures dropping to 30% or less. That culture of non-recognition and disengagement is where non-performers hide or those whose performance best fits another company.
Who’s the right person?
- Look in the mirror. Have you taken the StrengthsFinder 2.0 survey? Who works best with your strengths and talents and who owns the skills and experiences your company needs with this position?
- Ask those around you. Have they taken the StrengthsFinder 2.0 survey? Who works best with their strengths and talents and who owns the skills and experiences your company needs with this position?
- Use the CIDS interview. CIDS stands for Chronological In-Depth Structured interview. It’s described in detail in Dr. Brad Smart’s book: The Smart Interviewer: Tools and Techniques for Hiring the Best. I used it successfully four times, hiring three great people and avoiding one bad hire. I’ve written about CIDS numerous times in the past. You can read them here.
As you create a culture of recognition the importance of this step will grow from one of platitudes and website mission statements to realities lived every day.
Hiring the right person the first time leverages your investment in the hiring process to create a culture of recognition and engagement. The rewards will be seen in lower hiring costs, employee turnover, costly mistakes, lower Cost of Goods Sold, higher gross profits, greater customer loyalty and lower customer turnover, higher sales conversion rates and the pleasure of spending a day with passionate, engaged, professionals delivering a great experience for each other and your customers.
WARNING: Shameless Self-Promotion
My book, The Engaged Hiring Process: A Simple Plan to Help You Hire the Best, offers a more complete plan to not only hire the best but engage your employees in that process. The result is you welcome your newest A-Player into your culture of rapidly growing levels of engagement.