According to a recent survey conducted by OI Partners, it costs two times a manager’s salary and two and a half times an executive’s salary to replace one who leaves.
Let’s extrapolate a bit from the data and put some reality into it –
At a minimum, a manager that leaves making $60,000 will cost you approximately $120,000 to replace. An executive at $150,000 will take $375,000 to replace, if not more.
Bottom line? Hiring mistakes are costly! Ensure you hire right – the first time. Stop making these 4 hiring mistakes!
- Not Defining Success:
Many organizations don’t take the time to articulate what behaviors a person must demonstrate to be successful in a role or within their company. Take the time to investigate the role through a job analysis, create a realistic job description, define competencies that are required to be successful and customize hiring tools to select the right ability, attitude and personality.
- Interviewing based on “gut” feeling:
Too often we hear, “I have a ‘gut’ feeling about this one,” or, “You snowboard at Vail – so do I; therefore, you must be great as an accountant.” No! Just because a job applicant snowboards at the same resort you do does not give you any data on their ability to do a job.
I am not advocating to ignore your basic instincts. However, bring an objective voice into the selection process. By using a validated, EEOC compliant selection tool, you can gain another perspective of the innate characteristics of your job applicant.
- Not Getting Team Input:
You may have hired a great candidate who has amazing skills and knowledge but fails because of a personality difference among the team. Be sure to gain the perspective of the team to assure that the job applicant will fit within the company culture and will contribute to the team.
- Hiring Anyone Who Fogs a Mirror:
When an organization has a vacancy to fill, it can create a sense of urgency among the recruiter, the hiring manager to fill a seat. We will post an ad, interview and make a decision just to hit a deadline – if they fog a mirror and breathe . . . they are in!
Slow down! A position may be vacant longer than anticipated but by looking at more resumes, interviewing other candidates, you will, in turn, save money by not needing to hire again for the same position in 6 months. Make the right hire the first time.
It is your job to make sure your organization has the right leaders in place and the right tools to lead effectively. Our Leadership Consulting Services are focused on skill and behavioral assessment.
What mistakes have you made as a hiring manager? How do you get the right people in the right seats the first time?
Need help with getting the right leaders in place? Contact OI Global Partners today! We can help!
Shawna Simcik, M.S., CMP, Managing Partner, OI Global Partners – Innovative Career Consulting
Working in partnership with clients, Shawna designs custom career transition and leadership development for individuals, teams and corporations to address and attain sustainable, business results. Shawna is an active member and Board Director with the Colorado Human Resources Association and a 2011 and 2012 “40 Under 40” Nominee. Shawna holds a BA in psychology from the University of Colorado at Denver and a Master’s degree in Industrial-Organizational Psychology from the University of Nebraska at Omaha. She is certified as a Career Management Practitioner through the Institute of Career Certification International. She can be contacted at email@example.com.