Friday, 12 September 2014

COST OF HIRING A BAD EMPLOYEE


Employee hiring process is very vital to your business success. It takes patience, accurate screening and proper analysis. You may interview many talented people but you need to hire the one who really fills all the parameters and criteria for you and your company.
After many years of leading a company which is growing across several domains, the biggest lesson I have learned that hiring ‘right’ is the most important but the toughest job for an employer.



You first need to calculate or prepare a Hiring budget. Recruiting new employees is not a freebie. There is cost involved and categorized into departments such as monetary, time and resources. So preparing a budget for hiring is always a wise move, but I wonder why many companies don’t follow the same. The hiring process should be both efficient and cost-effective. You can get the total Cost per Hire by using the categories mentioned below in the example:



*      Advertising Fees
 500.00
*      Agency Fees
 1000.00
*      Employee Referrals
 0.00
*      Travel Expenses
 200.00
*      Relocation Expenses
 0.00
*      Internal Recruiter Costs
 2500.00
           TOTAL
 4200
           Divide by no. of Employees Hired
     /2
TOTAL COST PER HIRE
2100.00
            Example Table 1 (These are not actual market prices)



You just need to add up the amount spent on each category and divide by the number of employees hired and you will get a TOTAL COST PER HIRE. 

Cost Per hire is a common recruiting effectiveness measuring tool. Although this calculation is a valuable tool it does not take into account the length of time it takes to fill the position and quality of the hire. In addition cost per hires will drastically differ from position to position. For example, a cost per hire for a senior executive position will be drastically different from a non-exempt position. ©











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It is not easy to have a vision of right and wrong candidates on the first go. You need to gain bad experience beforehand for choosing good employees. This bad experience is like a rehearsal which teaches you how to identify the loop holes of the Interviewee and also helps you in getting the hints and signals of a wrong candidate. Let’s look at some precautionary steps to be taken to avoid hiring the inaccurate employees:




PRE-HIRING:



Attitude over Aptitude: Candidate’s skill and knowledge must be analyzed, but also focus more on those with the right attitude. A right attitude is always necessary not only for the business but also for the culture of your company. Always look for a positive and solution driven attitude rather than being problem-focused. Only a proper attitude will work in tough times in any industry and also these people have the hunger to learn and grow which in relevance will be beneficial for your company.




Be a good listenerAlways, let your candidates do the talking. A common mistake interviewers do is they talk too much and in result they are not able to extract much information about the candidate. Do ask difficult questions and give the interviewee ample time to answer, so you can focus on their thought process and problem-solving capabilities.




A Background Check: Checking references is a mandatory thing to do even if you are impressed with the person in the interview. In today’s diplomatic world a candidate will always tell you what you want to hear but a good reference check validates this. Your new team member will represent your business so it is important to verify with his/her previous manager and see what feedback you get from them. It is just like a precautionary method and as u know that “Precaution is better than Cure”




Reasons for leaving previous Job: This is the most important factor before completing the hiring process. The reasons for which a candidate has resigned from the previous company and position can display a large amount of his personality, ethics and priorities. Always find out why the person is leaving their current job because the same issue, if unresolved can continue to be a problem at the new designation too.



A hire isn't always successful unless the candidate is comfortable with the company and vice-versa. You need to keep a check on your employees after hiring also. Here are some basic areas where you can keep the radar on to classify your candidate and rate your potential hire































POST-HIRING

















Especially Yours: Every employee is equal in terms of company policies, work hours and for rules and regulation as per their respective contracts. These are basic rules that any employee needs to follow but still you find your new employee lurking around and trying to customize the working hours and regulations according to his/her needs is an red alert. This is a big hint that he or she feels that they are designated for special treatment and let me tell you this maybe just the start













Repeat Mode: Any new thing or person takes time to settle in a fresh environment, till then the errors made by them are considered more as a learning phase. This learning phase shouldn't be a elongated episode especially if they boasted about being a 'quick learner'. Making mistakes is allowed unless the same mistakes ain't repeated and it is fatal if they are major ones. If these mistakes start hampering your company name while making a sales call or delivering a project, you need to do damage control




The Time Machine: There are genuine emergencies which can't be controlled and need to be mutually co-operated but if an employee is not punctual for in the first week or phones in sick the warning bells could start to ring. Reason? Because it signifies their poor management and not being organized, this takes the first impression for a toss




Old Whine in New Battle: The most possible unprofessional and annoying thing a employee could do is 'whine' about the work given to them. Either because it doesn't fit in their profile or they have a “That’s Not My Job” attitude. It clearly displays that they are not satisfied with the work assigned to them which indicates a big worry as they will be whining more when the work becomes routine in coming months and they are not new anymore.



Ice ‘Breaker’: The first week is like more of a wedding function where everyone is happy and greets each other with their sweetest smile. All the new employees try their best to fit in and gel along with their new colleagues. Even in this happy-go-lucky environment your new hire starts a war over a small issue you need to interfere leaving all the important work. You surely don't want to hurt the self-respect of the employee by expecting him to let others walk over him but you don't need a gladiator either. Or else….be ready to become a boxing referee



Office Hero: Your new employee will join a team and will be working on a project with colleagues. You surely got an issue when the team effort is just highlighted by a single person. The whole time the complete team sweats for the project and this hero, swoops in just to grab the action.  This exhibits how the new hire lacks being a 'team player' who disturbs the complete work environment and harmony that you have worked hard to build




One in Hand, One in Bush: These kinds of candidates are the most confused lot in the professional world. They like to keep their options open which directly hampers their professionalism, interest in work and their honesty. You can't catch all of them but as soon as you come to know they are searching other companies while working for you, Please do what you need to.


Interact a lot with the candidate informing about the company policies and rules and your expectation from him towards the company. This makes the picture clear and also saves you a headache down the road.  
As mentioned earlier hiring is almost like a gamble as you are not 100% sure that the decisions you have taken are going to be completely beneficial for you. It is not about hitting the bull’s eye; it is about locating one first. A task which is like finding a needle in a haystack but you need to fulfill this one with complete responsibility as these candidates exhibit your business and are the pillars of your company. Therefore, it is imperative that a company perfects its hiring process to ensure that the right employees are hired for every position to guarantee that the business is as successful as possible.

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