Hiring: A Priority or an Afterthought?

 

It makes sense to put more effort into hiring when one in five employees turns out to be a bad hiring decision, according to a recent global study.

 

The 2005 Selection Forecast, released by an Australian HR consultancy Agency estimated that the annual employee turnover costs in an organisation with 5000 employees could amount to more than $2.2 million.

 

Their advice is, 'forget the line. People are your greatest asset.' Even though employers are never going to be 100 percent confident about every new hire, they can increase the probability of getting the right people by improving their recruitment strategy and backing that with a range of selection testing and processes.

 

70 per cent of organisations with high-quality hiring systems outperform their competition financially.

 

'Organisations are typically reactive when it comes to recruitment', says Mark Busine, the General and Marketing manager of an Australian HR consultancy agency. "Someone leaves the organisation and all of a sudden there is a position to fill. The pressure is on because lost time translates into lost revenue or productivity. Then, if the market is tight and there's a short supply of good candidates, employers are tempted to make decisions quickly.'

 

Improving selection procedures takes a little bit of time and investment but it pays off. The 2005 Selection Forecast found that 70 per cent of organisations with high-quality hiring systems outperform their competition financially.

 

The first step is to identify the successful attributes of a candidate for each of the key roles or job levels across the organisation, says Busine. Next, think of the selection process as working like a funnel.

 

"You're slowly eliminating people who don't meet particular criteria. It can start with simple screening measures that test for organisational fit and motivation for a particular job."

 

Finally, with a short list of candidates, Busine recommends a more thorough approach to interviewing such as using behaviour-based interviewing techniques. "I would never completely ignore intuition or gut feel, but it's about putting a bit more science behind it," says Busine.

 

This article was cited from 'Management Today' Jan/Feb 2006 Edition.

 

 

Food For Thought.

 

A CEO opinion survey conducted by an Australian recruitment agency showed that the top 10 worries of CEOs are:

  1. Being stretched and expected to deal with a range of business issues.
  2. Dependence on technology and reliability of technology in business.
  3. Understanding how customers behave and what drives buying decisions.
  4. How to raise work levels while keeping in mind people who have a greater perspective and want balance in their lives.
  5. Attracting the right talent to improve business outcomes.
  6. How to stop losing great people.
  7. Protecting and enhancing brand reputation.
  8. Being able to change and respond strategically.
  9. Not having enough people to rely on.
  10. Containing costs.

 

It is interesting to note that at least 5 of the top 10 worries had to do with recruitment.

 

Cited from 'Management Today'

Issue 24, May 2006

 

 

Look out for.

 

Psych Press HR Newsletter

July Edition

 

'How to Define and Convey Your Company's Culture'

 

 

Multi-Phase Recruitment Solution

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Our multi-phase recruitment system will assist you in:

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