Most small & medium sized companies face the issue of selecting the right hire. In-fact , a common problem that SME’s face is an employee leaving within 1 year of their joining , resulting in tremendous loss of time and money .
As per a survey done by Robert Half International, 39% of chief financial officers surveyed said that bad hires had cost them productivity, and 11 % said a bad hire resulted in fewer sales.
41 % of hiring managers and HR professionals who have made a bad hire estimated the financial costs of that hire in thousands of dollars.
Having a good team is paramount to the growth of the company. Most fast growing companies suffer a setback when it is not supported by the right employees.
Zappos CEO Tony Hsieh (A fast growing company), realized this early in his startup career and endeavored to raise the perfect Zappos family.
That’s why he ditched his company’s old corporate structure, it’s why he offers new hires $2,000 to leave the company if he or the employee think it’s a bad fit. . According to Hiseh, his past bad hires have cost his company well over $100 million
“It is very important to hire the right employees.”
Everyone advises on the importance of hiring the right candidate for your company to grow fast, However no one offers a solution for the same.
Most start- ups or SMEs invest a lot of time in planning their marketing and financial strategies, but when it comes to building a team, decisions are taken on an ad -hoc basis leading to a host of problems. Therefore, if a company intends on growing, It should focus on team planning in its early stages like Zappos CEO Tony Heish did.
Before the company starts the process of hiring, some ground work should be done to make the hiring process easy & effective.
3 Tips that you should practice to ensure that you select the right candidate.
- Understand & state the purpose of your business
State clearly “WHY” does your company exist and what is the purpose. Profits and bottom lines are the output, but the purpose is much larger. As mentioned in my earlier articles, it is easier to connect with someone with the same purpose . If a candidate connects with the purpose of the company, you know you have hired the right candidate.
For E.g.: Apple has a clear answer to the “Why” of the business. They believe in doing things differently, to challenge the status quo. They have a strong belief that is well defined. This means that the candidate who resonates with their purpose will most likely be the right hire, as he/she will connect with the company ideologies and the value system. They will also make for loyal employees.
- Ask your top leaders why are they in the company
Your top leaders could be the ones who are with you from the initial days or for a longer period. Whatever the case may be, they represent the behavior and traits of your company. Ask and note down the points on what makes them stay in the company. This will help in understanding the traits the company values and its importance to the employees
- Define the common attributes of your top 10%
Defining the attributes of your top performers will give you a clear picture of the kind of employees you want in your company. This will serve as a ready reckoner for hiring any new employee.
It is best to start this exercise early, as only a strong team can help you achieve your vision, and a wrong hire will take you that much more time to achieve the goal.
This guide will help you in hiring the right future candidate. So, use these tips and let us know your before and after experiences. I bet you’ll have something to say.
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