Three Tips on How To Avoid a Bad Hire
You know the one. That bad hire you made at some point in your career that still haunts you today.
The truth is, no one wants to make a bad hire. Aside from the human element, the negative impact on culture, morale, and even finances is mind-blowing (and well-proven). The U.S. Department of Labor estimates that the average average cost of a bad hiring decision is at least 30 percent of the individual's first-year expected earnings.
And yet, the mis-match happens over and over! What are we missing? Here are three observations on reasons as to why companies make a bad hire.
Desperation: needing someone in the seat, NOW. And it's true: sometimes as a leader, you don't have the luxury of waiting for the right person. But I have also seen many times when hiring decisions are rushed and important due diligence neglected.
Lack of self-awareness: This could be self-awareness about the company as a whole, the role itself, or even yourself as a manager/leader. Every company and every job has its strengths and corresponding weaknesses. If we're not eagle-eyed on those, we will miss finding the right person who will fit in well.
Avoiding the tough questions. It's easy to get caught up on the technical skillset, but rarely do I hear of someone not making it in a job because of the technical ability. It's almost always cultural/attitude/situational. The more we can dig deep in the interview and determine true *fit,* the more our chances of long-term success will go up.
So how do we increase our chances of hiring well?
Work the (interview) process.
I wrote last year about the magic of the process. Recruiting is not rocket science NOR is it wizardry, but it is committing to a true process of intentional work. Interviewing is Typically the process we recommend is this:
A shorter phone or Zoom interview to get basic details around background, reasons for job changes, compensation requirements, etc. (This is often handled by HR or an external recruiter).
A soft, “get-to-know-you” meeting where you have the opportunity to determine chemistry and fit. In this meeting, I will also work to build excitement around the opportunity and where we are headed as an organization and team. The “sizzle” is important here - how will they see their fingerprints on the organization?
The second interview is where I will dig a lot further. I recommend creating a scoring matrix that outlines the key elements for the job and scores the applicant on each area. It is easy to get “wowed” by one area where the potential employee excels, but knowing which areas you can flex in and which one you can’t.
Options to consider as a next step, depending on the role:
A meal or other social event is a great way to see interactions with others.
A case study or role play can show you actual work product. How do they interact in a situation?
Don’t forget about references! It’s also important that you ask the right questions in the reference call. “What is the one area the candidate could improve in?” Give the reference permission to truly speak to the person’s abilities / strengths / weaknesses.
Don’t be afraid to include other people in the process—whether internal or external. If you’re a small business, asking a trusted advisor for input on a particular candidate can alleviate any blinders you have on.
Don’t rely on applicants - be a hunter, not a farmer.
Relying on applicants increases the possibility of hiring due to desperation. I recently talked to a client who had to wait 3 months (!!) before being able to use external assistance. At that point, you’ll probably just about hire anyone.
The amount of active applicants on the job market has drastically declined since COVID. According to Career Builder, 60% of job candidates will stop an application mid-way through because they find the process too long or unwieldy.
Whether you use an external recruiter or not, you’ll drastically increase your pool of qualified talent by tapping people on the shoulder. Utilize LinkedIn for this or other social networking sites. Your personal network is also a great place to start.
Ask good questions—and listen well.
We talk about this almost every week in our team meetings. Listening well is a lost art. As Stephen Covey said, “People don’t listen to understand. They listen to reply. The collective monologue is everyone talking and no one listening.”
As an interviewer, it is your job to craft good questions and to listen well to what the person is actually saying. A common problem in recruiting is “happy ears.” Instead of actually listening to what the candidate does or does not say, you impose your own thoughts and solutions . . . instead of giving them the chance to talk.
Here’s a Forge list we compiled of some of our favorite questions. Behavioral questions are also a great opportunity to find out how someone will react in certain situations. Another excellent option is a “case study” or a role play where you give the candidate a specific situation (whether situational or technical), and see how they respond.
The New York Times recommends throwing in some oddball questions, such as “What is the biggest misperception people have about you?”
“The answers to this question will reveal candidates’ level of self-awareness. Do they know how they come across to others, even in ways that may not be a true reflection of who they are? . . . Tony Hsieh, the chief executive of Zappos.com, uses this question often. Here’s what he’s listening for with this approach: “I think it’s a combination of how self-aware people are and how honest they are. I think if someone is self-aware, then they can always continue to grow. If they’re not self-aware, I think it’s harder for them to evolve or adapt beyond who they already are.”
Hiring well is not easy. It takes a commitment of time, energy, and patience. But the results matter. The “A Players” are the people who will move the company forward more than anyone else.
What are your favorite strategies for avoiding a bad hire?