Why The Hiring Process Is Your Biggest Business Risk

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hiring process

Hiring is a fundamental part of nearly every business, and plays a big part in determining how successful that business is. The cost to a business of underperforming employees is significant. Recent research by Robert Half International found that supervisors spend, on average, 17% of their time (or one day a week) overseeing poorly performing employees. What’s more, 95% of employers say that poor hiring negatively impacts the morale of the team.


No matter how big or small your business might be, there’s always an element of risk involved with hiring a new employee. Having a solid idea of the things that can go wrong when you add a new employee to your business, and knowing preventative steps decreases the odds of you hiring the wrong person.


You Know Nothing About This Person You’re About to Hire

It would be great if we lived in a world where you could believe everything you see with your own two eyes, but that simply isn’t the case. Even though a majority of the people who will apply for a job with your company may be honest and properly qualified, there’s always a chance that you will be hiring someone who either doesn’t want to put much effort into their job, or who isn’t qualified to do the work you need.


The best way to avoid hiring someone who isn’t qualified is to double check the information they provide. Not only should you contact the references the applicant provided, but it is also worth reaching out to previous employers and educational institutions. The more time you spend checking out the background of the person you plan to hire, the less risk you’ll hire an unqualified individual. If you’re not satisfied with the references provided, don’t be afraid to ask the applicant for additional reference names.


They Won’t Fit in With the Team

Just because a person has all the proper qualifications and their previous employers report that they are hard workers, it doesn’t mean they will be a good fit for your company. In order for your company to run smoothly, the people you hire need to work well together as a team. Whenever you add a new employee to the mix, there’s always a chance that the cohesiveness of the team could be put at risk and productivity and job satisfaction will suffer.


Are They Worth the Effort?

Hiring a new employee, training them to do their job, and integrating them into the team takes time, effort, and money. Make sure that the person you’re about to hire is a good fit and won’t leave a month or two after you’ve hired them by being very detailed about what they will be expected to accomplish during the average work day, and asking them questions about their future plans.


Are You Really the Best Person to Be Handling the Hiring Process?

It’s your business and you’re the one who will be signing the paychecks, but that doesn’t necessarily mean you’re the best person to handle the hiring process. Most large businesses have found that letting a neutral party, usually someone from the human resources department, sort through the applications and handle at least the first wave of interviews is an effective way to identify the most qualified applicants.


Take Your Time and Carefully Consider All of your Options

Even though you might be desperate to fill a position, you shouldn’t rush through the process. Hiring someone who isn’t going to fit into your team, or who won’t be able to complete the work they’re assigned, can cost you a great deal of money and aggravation. The more time you take considering the pros and cons of each applicant, the greater the chances of you making the right decision and adding someone to your team who will prove to be a real asset.


Image credit: aslysun/ shutterstock.com


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