Did you know “a bad hire can cost an organization up to 30% of the employee’s first-year salary?” At least, that’s what the Department of Labor estimates. It’s no news that hiring is a very serious operation within an organization. Not only for the purposes of saving money, but also for the sake of employee morale and culture consistency.
Now more than ever, the state of hiring is in major jeopardy. Don’t just take my word for it — PXT Select released a white paper giving insight into all the challenges and opportunities more than 3,000 hiring managers are facing — and it’s in regards to the year 2020. This vulnerable look into the state of hiring after a social and economic crisis has finally put it on the radar that hiring has needed major work and attention for the majority of organizations across all industries. Read on to learn more.
You either rebuild now or become even worse in your hiring process.
Now is the time for organizations to rebuild better than before because let’s be honest — before wasn’t that great either. Within the data, it was reported that “three out of four respondents said that the hiring process, in general, is challenging for their organization.” It was also reported that 54% said hiring managers do not always align with colleagues and/or recruiters on job requirements, 39% said candidates are not always assessed with a structured interview process, and 70% said new hires are not always onboarded effectively.
So, you see what this does right? A flawed hiring process leads to a flawed system in general. It’s basically a snowball effect — it starts during the interviewing and builds all the way into the onboarding. This is unfair to the people in these positions, as well as the person being hired. Keep in mind, these statistics have been shared as both current and pre-COVID challenges.
The pandemic escalated all pre-existing hiring challenges.
But now, not only do we still share the same challenges as mentioned above, but there are also new challenges that have arisen due to operating in a remote work environment.
- 56% of respondents say that onboarding in a virtual environment has emerged as a concern.
- 75% reported challenges with aligning with colleagues and/or recruiters on job requirements
- 68% reported challenges with knowing which topics to focus on during the interview
- 83% reported challenges with determining which candidate will be the best fit
- 78% reported challenges with onboarding new hires
Here’s the real shocker – 65% of hiring managers said they rely more on their instinct than data when deciding who to hire.
Aside from all the external issues that make hiring hard, this is where the root of the problem lies. “In a world of data-driven decision making, hiring managers have placed far more emphasis on their gut instinct, yielding an incomplete and likely biased picture of their own pool of candidates.”
It’s pretty obvious why this type of decision-making process is heavily flawed and if this type of hiring continues, it will only weed out the companies and organizations that will not continue to thrive post-pandemic and beyond.
How to start implementing an objective, data-driven hiring process
It starts by getting your teams on the same page. After all, they are after the same win. In order to build a hiring manager’s confidence and remain objective, getting consistent across all boards is essential. Having a clear onboarding process is KEY to helping hiring managers know exactly what will be expected of candidates which can, in turn, naturally help them to know who to place where.
The process of being assessed, selected, and onboarded should be clearly laid out and communicated across all people involved in the hiring process. In other words, get your “house” in order to consistently close the right hires.
“Hiring processes that enable organizations to acquire the best talent lay the foundation for a sustained and successful economic recovery, so now is the time to reflect on and revamp how hiring is done”
Don’t find yourself behind the curve in the post-pandemic economy. The state of your hiring is a clear indicator as to how well and how long you’ll operate going forward.
To learn more about the data reported on hiring after 2020, download the PXT Select white paper for FREE