Training for a Multicultural Business Environment

Bad Hiring Decisions Mean Big Costs for Companies

Employee selection is one of the most important decisions you make as a manager. Recruiting employees can be a very expensive process. There are a number of direct and indirect cost associated with hiring – advertising open positions, costs associated with interviewing, the productivity loss of having an open position, as well as the cost of new employee training and learning curve. Considering the costs associated with hiring, isn’t it important to make the right hiring decision?

Too often, managers make errors during interviews that result in hiring an employee who isn’t appropriate for the position. When a bad hiring decision is made, it could result in:

• Inconsistent hiring practices – When hiring decisions aren’t based on clearly established criteria, your hiring is inconsistent. Many managers rely on their “gut feeling” which often has little to do with the responsibilities of the position. Using behavioral interviewing, you are able to match the skills required for the position with demonstrated past performance.

• Possible exposure to legal action – Some managers have only a minimum understanding of the state and federal laws that govern interviewing and hiring. Employee selection training provides legal foundation and understanding of these laws. Training also ensures that you are EEO and ADA compliant, minimizing your exposure to potential legal action.

• Rapid employee turnover – Bad hiring decisions don’t work for anyone. Employers are frustrated by employees that aren’t right for the job, and those employees don’t feel comfortable in the position. If the new hire quits, the business has all the costs associated with rehiring for the position.

• Discomfort in making hiring decision – It’s tough to make hiring decision without a clear criteria for hiring. Behavioral interviewing gives managers clear cut criteria for making decisions. When you interview, you know which candidate is right for the job. There’s no reason to feel uncertain. 

• Personality clashes between newly hired employees and existing staff members – When an employee isn’t right for the position, everyone feels the stress – other team members and the manager. An employee that doesn’t perform puts additional job stress on colleagues, which often leads to disagreements and problems.

Employee training and development gives managers the tools they need to make good decisions during the hiring process. With employee training and development, you give managers and supervisors the skills they need to get the right employee in the right position. Providing on-site training for managers in interviewing and hiring skills saves time, effort and ultimately minimizes costs for the company.