A wise person remarked something to the effect of, "We spent 10% of our time selecting good candidates and end up spending 90% of our time on managing those selection mistakes." Estimates of the cost of a bad hire range between 30-100% of the total cost of the employee, with some sources citing even higher costs for critical talent and leadership roles. Hiring is a crucial process as it injects talent into the organization and we need to ensure the process works well. Hiring effectiveness could be measured by a low False Positive and False Negative rate. A False Positive is when we hire someone who doesn't work out (i.e. we wrongly believed they were awesome). A False Negative is when we reject someone who would have been awesome, but we failed to spot the talent. To improve hiring effectiveness, there are multiple interventions to consider and I would like to focus on two - 1) using a systematic process to reduce bias and "noise" in the candidate evaluation process and 2) using high-validity tools for candidate evaluation
HRHeadStart #6: The Talent Acquisition Edition
HRHeadStart #6: The Talent Acquisition…
HRHeadStart #6: The Talent Acquisition Edition
A wise person remarked something to the effect of, "We spent 10% of our time selecting good candidates and end up spending 90% of our time on managing those selection mistakes." Estimates of the cost of a bad hire range between 30-100% of the total cost of the employee, with some sources citing even higher costs for critical talent and leadership roles. Hiring is a crucial process as it injects talent into the organization and we need to ensure the process works well. Hiring effectiveness could be measured by a low False Positive and False Negative rate. A False Positive is when we hire someone who doesn't work out (i.e. we wrongly believed they were awesome). A False Negative is when we reject someone who would have been awesome, but we failed to spot the talent. To improve hiring effectiveness, there are multiple interventions to consider and I would like to focus on two - 1) using a systematic process to reduce bias and "noise" in the candidate evaluation process and 2) using high-validity tools for candidate evaluation