Hiring issues are often unavoidable. However, understanding the common hiring mistakes employers make will help you break the pattern in your own hiring process. For example, suppose you’re considering two applicants for a position you’ve desperately been trying to fill. The first individual has three years of direct industry experience and is even fluent in American Sign Language.
Staring at the second applicant’s resume now, you notice they’ve never actually worked in your specific industry. Who would you hire? The answer is far more complicated than some may think. Continue reading to see if you’re making bad hiring decisions, and discover the costly impact it can have on your business.
What Are the Most Common Hiring Mistakes?
1. Poor Screening
Inadequate – and even nonexistent – background checks account for 43% of bad hires, according to a study from CareerBuilder. It can be tempting to simply hire anyone during a labor shortage, but it is still important to verify applicant information so you can feel confident moving forward in the hiring process. Plus, you don’t want to waste resources on an applicant that won’t succeed or stay long-term.
2. Prioritizing Resumes
78% of job seekers have exaggerated or even lied about their experience on a resume, according to a recent survey. Of these 800 people, (comprised of job applicants, hiring managers, and other human resources personnel), 60% admitted to lying about mastery of a skill on their resume such as fluency in a foreign language. Additionally, prioritizing one’s resume won’t show you the whole picture of who they are as a person. That piece of paper does not reveal their character or soft skills – skills that cannot be taught, such as self-awareness and intuition.
3. Avoiding Technology
Some people may worry technology like AI screening tools will replace human labor, but it’s actually quite the opposite! Technology empowers employers and employees to efficiently achieve their daily operations. Recent innovations can improve your employees’ productivity and quality of work.
4. Posting Vague Job Descriptions
It’s easy to overlook the importance of your job descriptions and only include the bare minimum of information. However, a recent study found that 67% of job seekers are more likely to apply when a salary is included in the posting. Failure to be specific about applicant qualifications and expectations can result in a shallow applicant pool.
The True Cost of Bad Hiring Decisions
One bad hiring mistake can cost your business thousands of dollars. In fact, it can cost up to $5,864 to replace a single hourly worker, according to The Center of Hospitality Research. This expense includes pre-departure, recruitment, selection, training, and lost productivity. However, the financial impact isn’t the only thing you need to worry about when you make hiring mistakes. There are several “hidden” costs of employee turnover. Keep in mind that bad hiring practices also affect productivity, morale, quality of work, and even the customer experience.
How to Avoid Hiring Mistakes
The best way to avoid hiring mistakes is to be more selective during the recruitment process. What characteristics make up your ideal employee? Do the individuals you’re interviewing share any of these traits? Of course, quality over quantity is easier said than done, especially during a labor crisis and global pandemic. Read our blog, “How to Improve Your Hiring Process: 4 Best Practices” to learn how to reduce costly turnover and start hiring the best employees every time.
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