Celeste Johnson is CEO of The Applied Companies.
RENO, Nev. — Have you made a mistake and hired a poor performer for an open position?
It can be very painful to realize that the person you have chosen at the end of a lengthy hiring process isn't actually working out — or is actively causing problems.
One of the issues, of course, is the expense of the hiring process. Estimates vary from roughly 20% to 30% of a new hire's salary to $240,000 for the onboarding process. The estimates include the cost of the hiring process plus training.
Because hiring is so costly, managers are often tempted to keep lackluster hires. In many situations, it can all too easily seem like a smart move for the bottom line.
However, it might be better off taking the leap and replacing that bad hire quickly, for a number of reasons, including:
• First, poor performers impact productivity. Productivity is key to results for most businesses. Whether the issue is simply poor work, slow work or some other issue, it can damage business productivity in multiple ways. If other employees have to step in to try to fix the damage, the productivity impact can multiply. Now, better performers aren't at peak production either, because they are trying to deal with the bad hire.
• Second, keeping a bad hire can affect morale and engagement among your employees. Your star performers won't want to work with poor performers. Your medium performers may work with them, but become unmotivated and disengaged as a result. Your relationships with the rest of the staff may suffer as a result. You'll receive fewer tips about what's going on and your staff may check out mentally or even physically.
Because of the potential negative effects of keeping a bad hire, it's often a good idea to take the bull by the horns and let them go. It will minimize productivity and engagement issues in the long run.
In fact, many managers feel it's the right move to set up key objectives and metrics openly from the beginning, and then terminate people who can't meet them.
But obviously, going forward, you want to make sure you find high quality employees. How can you make sure you find the right fit for your team?
First, make sure your interview process assesses the qualities and skills your employees will need on the job. Cut candidates who can't meet them from consideration.
Second, check deeply into their background. Ask open-ended questions of their references, designed to get a perspective about how they performed and behaved in different situations.
Third, train new employees. Utilize your team to make sure that new hires understand how, when, and what to do on the job. Thorough training can set up employees for success.
Fourth, establish key metrics and objectives. Have a discussion early on that sets forth what metrics and objectives the employees need to meet. Don't leave this open to misinterpretation. The more clear you are, the more your employees will know exactly what you want.
Celeste Johnson is the CEO of The Applied Companies. TAC has been serving Northern Nevada since 2002 and specializes in human resources, staffing and executive searches for small- to medium-sized businesses. Looking for a staffing partnership or HR/benefits consulting help? Go to theappliedcompanies.com to learn more.
-->RENO, Nev. — Have you made a mistake and hired a poor performer for an open position?
It can be very painful to realize that the person you have chosen at the end of a lengthy hiring process isn't actually working out — or is actively causing problems.
One of the issues, of course, is the expense of the hiring process. Estimates vary from roughly 20% to 30% of a new hire's salary to $240,000 for the onboarding process. The estimates include the cost of the hiring process plus training.
Because hiring is so costly, managers are often tempted to keep lackluster hires. In many situations, it can all too easily seem like a smart move for the bottom line.
However, it might be better off taking the leap and replacing that bad hire quickly, for a number of reasons, including:
• First, poor performers impact productivity. Productivity is key to results for most businesses. Whether the issue is simply poor work, slow work or some other issue, it can damage business productivity in multiple ways. If other employees have to step in to try to fix the damage, the productivity impact can multiply. Now, better performers aren't at peak production either, because they are trying to deal with the bad hire.
• Second, keeping a bad hire can affect morale and engagement among your employees. Your star performers won't want to work with poor performers. Your medium performers may work with them, but become unmotivated and disengaged as a result. Your relationships with the rest of the staff may suffer as a result. You'll receive fewer tips about what's going on and your staff may check out mentally or even physically.
Because of the potential negative effects of keeping a bad hire, it's often a good idea to take the bull by the horns and let them go. It will minimize productivity and engagement issues in the long run.
In fact, many managers feel it's the right move to set up key objectives and metrics openly from the beginning, and then terminate people who can't meet them.
But obviously, going forward, you want to make sure you find high quality employees. How can you make sure you find the right fit for your team?
First, make sure your interview process assesses the qualities and skills your employees will need on the job. Cut candidates who can't meet them from consideration.
Second, check deeply into their background. Ask open-ended questions of their references, designed to get a perspective about how they performed and behaved in different situations.
Third, train new employees. Utilize your team to make sure that new hires understand how, when, and what to do on the job. Thorough training can set up employees for success.
Fourth, establish key metrics and objectives. Have a discussion early on that sets forth what metrics and objectives the employees need to meet. Don't leave this open to misinterpretation. The more clear you are, the more your employees will know exactly what you want.
Celeste Johnson is the CEO of The Applied Companies. TAC has been serving Northern Nevada since 2002 and specializes in human resources, staffing and executive searches for small- to medium-sized businesses. Looking for a staffing partnership or HR/benefits consulting help? Go to theappliedcompanies.com to learn more.
