Business leaders and CEOs grapple with difficult decisions every day. Their high-impact decision-making keeps the wheels of business moving forward. Recruiting a new executive team member is one of the most consequential decisions business owners and leaders will have to make. As many experienced business leaders know, a hiring misfire could set the company back and potentially disrupt business growth.
The cost of a bad hire will vary from company to company. By one measure, an unqualified team member can lead to a loss that’s equivalent to 30 percent of the hire’s total compensation package. That’s according to the U.S. Department of Labor. In another survey, the Society for Human Resource Management estimates a must steeper price. The true cost of a bad hire could be closer to five times the expected annual salary. Efforts to undo the error, such as reopening the recruitment process and making up for lost productivity, can be substantial.
The bigger price to be paid will not necessarily appear on financial statements. Low morale, diminished worker productivity and even resignations could be part of the fallout of a bad hire.
Poor recruiting decisions within corporate environments happen at a surprisingly high rate. That is why it’s important for business owners and leaders to fully evaluate their executive recruitment processes and resources to ensure the recruitment of high-quality individuals who strengthen company leadership and culture.
How companies hire right
Recruitment experts advocate for an approach that’s supported by deep research and technologies. In addition to consultative services, companies can implement other hiring strategies that set them apart from their competitors. With this advantage, opportunities for the acquisition of top talent widens.
The following tips are proven methods that have guided decision makers at all corporate levels through the hiring process, resulting in a favorable outcome that builds and grows company success.
Not settling on opportunity costs
The stakes are extremely high when considering the addition of a new executive member. Companies can bring on a game-changing team member who helps turn around a company or bolster their ongoing success. A bad hire can counter company progress and delay business growth. The margin between these two outcomes is vast. As such, companies must be acutely aware of the opportunity costs before deciding on a new hire at the executive level.
An average addition to the team will simply not cut it, given everything that there is to gain from an exceptional hire. Any process that does not prioritize zeroing in on the most qualified individuals should be set aside.
Companies should connect with the best possible candidates when starting the hiring search. Anything short of this standard can come at a steep price. Research, consultative and recruitment services empower companies to narrow the field to only the most distinguished performers who seek new challenges and opportunities with a new company.
Companies should work closely with third-party recruitment sources and be fully aware of how research is conducted. The method should be updated and exclusive of all qualified candidates.
An impressive resume is important, but so is the candidate’s reputation. Fully uncovering this data point means pre-referencing candidates to learn about what exactly they will bring to the table. Unlike a standard reference check, this evaluation should be under the radar. The goal is to receive an honest assessment of the candidate’s performance and to check for any red flags as early as possible.
Focus on behavior data points
The top companies in the world have plenty of genius-level executives. Successful businesses also hire individuals from the most prestigious schools in the world. Yet, these credentials do not always predict success. Instead, top companies weigh the candidate’s behavior data points. What have they done? How do they do it?
A candidate’s impressive track record and results-based performance are indicative of good habits and values. These traits, above others, can be the difference makers between a good hire and a game-changing one.
Candidates should be aligned in the mission and values of the company. That is where Avanti Recruitment Solutions comes in. Avanti recruits with speed and accuracy to ensure the best fit between technology professionals and growing, mission-driven firms. We consider your leadership style and your company’s mission when determining the fit by selecting professionals who have succeeded in similar companies. Our clients appreciate the speed and accurately matched candidates, sometimes within 72 hours of your request! Avanti provides direct-hire, contract and contract-to-hire recruitment services across the U.S.
Contact us today if you have any questions about our recruiting services!