Saturday, August 17th, 2019

One of the sad outcomes of my consulting work is that I’ve seen, again and again, how companies make the same mistakes in selecting employees. There are a few common errors made by a majority of companies. Here are the top six selection errors that you need to avoid…

Selection errors cost four to five times annual salary. Hire the wrong person for a $30,000-a-year job and it eventually will cost you about $150,000. The tangible costs alone of a poor hire are often quoted as a minimum of 25-35% of a year’s base salary. The costs go beyond direct salary and benefits. The costs can include materials, recruiting expenses (fees, travel expenses, management time, and advertising), training time and training materials. Other less obvious costs could be losses such as spoilage of materials, products or other resources, lawsuits and even the loss of a customer. All of these costs are quantifiable, and you probably can think of more. And not the least of costs is the time and effort to repeat your recruiting and selection process and training.

Intangible costs of a poor hire are five times the tangible costs

Intangible costs are not as easy to quantify. Here are a few that other company owners have shared with me: …..

You have heard a lot about assessments from assessment company articles, email, Internet etc- I am confused with the information… As a small to medium sized company owner, how do I select the right assessment for me to use?

As a company owner, I used assessments to help me make decisions on who to hire and who to promote and found them helpful. As a consultant to small business owners, I looked carefully before I selected an assessment company. I set up criteria that were helpful from my past experience as a company CEO.

Selection Criteria:
• Does the company have ……….

I seem to be getting great people to interviews and they seem to be very qualified and impressive and I like them right away…..but when they join the company they are not the same….I must have missed something. One of my lessons when managing my sales force hit home many times, when I only hired experience or on superficial impressions- I learned that two other key items came with the new hire; chemistry and behavior!

Situation: You have just received the results of an assessment for someone you are considering to hire. You believe you have a great person and the results of the assessment seem to be positive. Most assessment companies declare that the assessment should be no more than 30% of the selection process. In order to maximize the information in the assessment, you need to know how to use the report. Some assessments are easily faked when taken and this process will help you understand the assessment’s reliability and validity

The key to remember is- that validation comes from ……