Employers: Are these 5 risks getting in the way of hiring at your firm?
When aiming to grow a firm, the recruiting and selection process is vital, and many risks can stand in the way of locating the suitable “fits” for a company. For every employer looking to locate and land the top talent, consider:
Risk 1: Credentials
This is perhaps the easiest risk to mitigate because degrees, licenses, and certifications can all be checked and confirmed by third-party sources. A hiring entity must not shortchange its process by taking a candidate’s word for it.
Risk 2: Chemistry
Organizations can utilize various techniques to determine a good chemistry fit, but how many actually use them? Make sure the candidate interviews in both one-on-one and group settings. Also, ensure that candidates meet with multiple types of constituencies; giving a mix of different ethnicities, genders, and levels of personnel can help to highlight any issues. An often overlooked dynamic is to vary the interview locations — how does the candidate appear in formal and informal settings?
Risk 3: Compensation
This risk is a tricky topic. Typically, the hiring entity relies upon the honesty and transparency of the candidate to determine where that person stands relative to the company’s compensation plan. Hiring managers must be extremely detailed to ascertain all the dynamics of one’s existing compensation package, especially the benefits. Equity, phantom stock, and other esoteric non-cash must be thoroughly understood.
Risk 4: Relocation
Employers invest a lot of money in the recruiting process, and one of the worst outcomes is when a relatively new hire leaves after a short time. Difficulties tied to relocation are often cited by all parties as a critical stumbling block. Therefore, companies would be well served to quiz prospective employees about relocation synergies or the lack thereof.
Risk 5: Character
I define “character risk” broadly and consider the following: Is the new employee authentic in his/her dealings? Did claims during the interview seem embellished? Does the employee have a short fuse or appear to be high maintenance? This is not just about chemistry; it is much deeper.
In-depth interviewing can uncover many of these items, but the use of testing and assessment tools is a wise option. I am also a firm believer in references; however, many organizations do not adequately call on references from different levels (supervisors, peers, subordinates, and vendors). In addition, many times the probing, but allowable, questions are not asked.
Have you just hired a bad apple? If you are asking this question it might be too late — look out for the above risks during your next round of recruiting.