The economic recovery is chugging along and with it, jobs have come back in force. The latest federal data indicates U.S. employers added 165,000 jobs in May - a monthly increase that built off previous totals like February's (+268,000 jobs) that suggest the labor market is trekking back to normal levels.Employers with workforce expansion on their minds won't have to look far to fill open positions being created with renewed vigor; thanks to a still relatively high unemployment rate, the talent pool is large and swimming with able-bodied and -minded applicants.
Yet before employers rush into hiring, they must know the risks associated with a bad hire, which are many in number and great in consequence. A recent survey from CareerBuilder found 66 percent of U.S. employers reported making a bad hire this year and 27 percent said it cost them more than $50,000. Thirty-six percent said such a hire led to lost productivity and 32 percent cited a negative impact on employee morale.
Bad hires carry with them a range of risks that employers must be aware of: Making a bad employment choice can have wide-reaching ramifications, both tangible (lost sales) and intangible (a toxic work environment).
Here are three steps to take in the hiring process to ensure you steer clear of a costly hire:
1) Take your time.
Hiring an employee is an investment in human capital, and no thoughtful investor rushes to pour money into an asset without first doing the proper diligence. The less time an employer takes to make an employment decision, the more open to risk it is. Considering this, it's important that hiring decision-makers don't needlessly accelerate the employment process without first sufficiently gauging an applicant's talents, qualities and mindset. There's plenty of fish in the sea, but make one wrong move and you might just bring a great white on board.
2) Keep company culture in mind.
Let's posit that an applicant is extremely qualified with fawning references and an impressive work history. Seems like a no-brainer, right? But consider beneath that grand facade lies a prospective employee willing to coast on his or her laurels and who is more prone to making workplace enemies than friends. Ensuring an applicant is a fit for the company culture is tantamount to making a safe hire and cannot be ignored in the pre-employment process.
3) Consider using background checks.
If there's one agreeable thing Dr. Gregory House ever said, it is that everybody lies. Employers need to be absolutely sure they cover all their bases when making an employment decision and utilizing screening solutions provided by an HR partner can help businesses do just that. Running checks on individuals is crucial to a safe work environment and hiring strategy.
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