Why Use A Hiring Process?
Using a hiring process reduces the amount of subjectiveness – or confirmation bias – that normally occurs when you attempt to conduct the selection process without a standardized system or approach.
Confirmation bias is the tendency to interpret new evidence as confirmation of one’s existing belief of theories.
When hiring, confirmation bias can occur when an interviewer forms an initial opinion of a candidate and then uses the interview process as a way of confirming these beliefs, rather than getting to know the candidate through a standardized hiring process.
Studies have been conducted over the years that illustrate the measurable and immeasurable costs of hiring a person who does not fit the position, the manager, or the company.
According to a US Government study, the costs may range between 2 to 3 times the annual salary for the position. However, according to Bradford Smart, author of Top grading: How Leading Companies Win by Hiring, Coaching, and Keeping the Best People, the costs may range from 14 to 28 times the annual salary per position.
Why the huge gap between studies? The answer: Opportunity Cost. This is the one cost that is difficult to estimate.
Opportunity cost means the cost that you absorb while having a mediocre employee.
Keeping mediocre talent prevents you from looking for someone better. In fact, when someone does a good job, we often trick ourselves into believing that they are better than they are – we tell ourselves that the time, energy and resources it takes to go find someone new will be worse. The truth is every day you keep someone that is only good enough you lose the results you would get from someone who will blow your mind and produce results that could change your organization.
There are five reasons to use a hiring process:
1. Reduced hiring costs. One of the byproducts of a successful hiring system is effective succession planning. The structured checkpoints throughout the process help you stop the process as soon as you realize a candidate is not a fit for the position.
2. Reduced Organizational costs. A process minimizes the costs associated with making a hire that doesn’t fit and ensures that if a candidate does not match the position, they will not be hired.
3. Increased productivity. A process increases the likelihood of matching the best person to the position, the talent leader, the company, and the team. This leads to increased productivity for the company at numerous levels in the organization.
4. Increased revenue. A process ensures the appropriate fit per role. This reduces ineffectiveness and increases revenue to the company.
5. Build Culture. The level of success you achieve in life and business is in direct proportion to the number of talented people you have in your life. A great organization is one with a culture of performance based on core values.
There are many benefits to using a hiring process, including helping you conduct a thorough screening process that is interactive and focuses on the candidate.
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