What’s in a bad hire?

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Posted by Doug Lubin

December 15, 2010

A blog post today on TLNT.com reviews recent research from CareerBuilder on the impact of bad hires on the organization. CareerBuilder found that for one in four hiring managers, the financial impact of one bad hire exceeds $50,000. Four in 10 hiring managers said a bad hire cost the organization more than $25,000.

My question is how do they define "bad hire?" Are bad hires those that quit or get fired for non-performance? Just as important, were these hires given the right tools to succeed?

Today's TLNT post offers a few pieces of advice to hiring managers on how to avoid bad hires, and the negative consequences (financial and otherwise) associated with them. I'd like to add a few more tips and comments to the list:

  1. Past performance is the best indicator of future performance. Check it in detail.

  2. Assessments. Well-developed assessments can be very good predictors of someone's fit for the role based on many factors. They're well worth the investment.

  3. Create a realistic job preview. Unmet expectations are a huge reason for turnover.

  4. Companies that outperform invest more in talent acquisition and development. Organizations that continuously source talent versus react to a need will deliver consistently better quality hires.

  5. My old boss and mentor used to say that bad news is best delivered early and in great detail. What tools are in place to evaluate an employee's performance early, measure, communicate, intervene, and course correct? Six-month evaluations in some roles is too long. For others, too soon. Figure out the right interval and make data-based decisions. Be transparent!

This post was written by Doug Lubin, a successful Recruitment Process Outsourcing (RPO) Practice Leader and Consultant, who brings over a decade of expertise building sustainable solutions for clients and partners.  Doug helps firms develop high performing talent acquisition and management strategies locally and globally.  Learn more about Doug.

Topics: HR Strategies

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