5 Reasons Why Good Companies Lose a ‘Good Hire’

Building a Good Team takes quite a bit of planning and effort, and when each team member counts, it is absolutely important that each decision made directly affects in gaining versus losing a ‘Good Hire’.

Often good companies/hiring Managers tend to adhere to age old practices which unknowingly result in their losing good potential hires to competitors. Here are few reasons why.

  1. Unclear Job Descriptions: Bogged down by other priorities, Hiring Managers often tend to put together Job Descriptions that are quite a few times Unclear, Incomplete or even some time just verbal.

It is important to understand that the initial effort put to identify and document a detailed job description saves all the stake holders (Hiring Managers, Interviewees, HR Manager / Recruiter) an exponential amount of time.

Tip: A good job description should include the below among other details.

  • Elicit the Role’s Objectives and Job Deliverables
  • Differentiate between Mandatory and Nice to Have Skills
  • What’s in it for the (ideal) candidate to work on this role – Work Culture, Compensation, Benefits, Flexibility etc
  1. Expect a 10 Out Of 10 Candidate: Envisioning an ideal team, Hiring Managers tend to interview candidates expecting to find someone who has “been there”, “done that” what exactly they are doing. Yet, with the technology changing at a lightning speed, statistics portray that it is almost impossible to find someone like that, and hence having to lose an (almost) good candidate most of the times.

Tip: Draw a line between mandatory and nice to have skills, and aim to be flexible with a 10 – 25% cushion factoring to be covered by formal/informal training after the candidate comes onboard.

Hire for the attitude equal (if not more than) the skill. If a person portrays interest and flexibility in learning new technologies and also displays an attitude of high accountability to meet the expectations, he/she would be able to pick up what you need in a reasonable time and should be considered as a costly mistake if not hired.

  1. Complex Interview Process: Hiring Managers often tend to involve multiple team members to screen/interview a potential hire in multiple sessions so to save their head in case of a mis-hire. Not criticizing this process, it is important though to understand that interview process can be made redundant by interviewing in a group. Staffing

Tip: Define the Ideal timeframe for Interview Cycle based on the position to be as below.

Full time Positions: 1 week (e.g. Monday- Phone Screen; Wednesday – Inperson/Video Interview; Friday – Extend Offer)

Contract Positions: 2 Days (e.g. Monday- Phone Screen; Tuesday Mor. – Inperson/Video Interview; Tue COB– Extend Offer)

Scheduling third and fourth interviews is one way to make sure top talent is chased away.

  1. Failure to Understand Market Conditions: An important gap in understanding the shifting market conditions ends up as a big source of conflict between Hiring Managers and Recruiting Teams. The recruiting team by the virtue of being closer to the shifts in market dynamics are better informed about supply Vs demand ratio, compensation shifts etc but Hiring Managers tend to be informed by external news media reporting that unemployment is at near record highs and assume that they have the comfort of picking from a big and desperate talent pool. This misunderstanding of Companies/Hiring Managers mistakenly believing that they are in a job-driven market while the shift to a candidate-driven market has occurred in months or years prior. 

Tip: Hiring Managers invest in the process to apprise themselves of the Market Conditions by utilizing the help of Recruiting Experts on a Quarterly basis.

  1. Cost of Open Positions Not Understood. Many times hiring managers that are not “profit centers” but are “cost centers” view open positions as “cost saving. It is vital to understand that open positions have a cost. Unfilled openings tend to burden existing team members who must pick up the overflow of work. Often this results in over worked employees, stress and attrition. There are quite a few instances when this further results in bugs, gaps in compliance procedures etc. As a result of which it is approximated that for important roles, the revenue lost is measured in most companies as 3 to 5 times the annual salary as the real revenue that is being lost. If more companies realize this, they would be focused on adding speed to their process.

Tip: Evaluate the potential qualitative & quantitative risks for Important Roles being ‘Open’ by taking into account the existing team’s bandwidth, statistics of product/system bug history, compliance procedures audit and educate the decision makers about defining a deadline to fill a role by choosing from the existing pool of interviewees.

Please share your thoughts in the comments section below.

Facebook Comments

This 106-Year-Old La

A 106-year-old lady by the name of Virginia McLaurin has ...

5 Reasons Why Great

A study reported on Hcareers.com suggests that 35 to 50% ...

5 Reasons Why Good C

Building a Good Team takes quite a bit of planning ...

Have ‘grooming’

‘Change yourself in few hours/days’, ‘Habits of successful people’, ‘You ...

3 Tips on getting th

If you think that your dream job is just a ...

Tips for an In Perso

Research a company and its industry You’ll need to do thorough ...

READ NEXT (1 of 5 articles)
Business handshake

Read previous post:
Don’t You Enjoy Criticism?