Minimizing The Pain Of Hiring Errors
Minimizing The Pain Of Hiring Errors
By Judy Olian**
For all of his legendary accomplishments, Jack Welch of General Electric asserts that his most significant success was in the hiring and development of great people. Many managers wish they could make the same claim and had the ability to spot employees who will be unqualified successes no matter how their job expands, tremendous additions to the team, with the capacity to thrive in an uncertain future. And, managers look for the "loyalty" factor as an added measure of the success of their new hires. That's quite rational since when things go wrong, the average replacement costs for a manager or professional amounts to 18 months salary.
Beyond the obvious, what are some strategies to reduce the odds of hiring errors? First, look closely at the requirements of the job as they are in reality. Some managers have a glorified or distorted view of the real activities and requirements of the job. If they hire accordingly, they will select the wrong people, and create unrealistic expectations in the eyes of new employees.
Second, consider the dynamics of the work team. What's the role of the new hire? Fitting in to a well functioning team without rocking the boat, or inserting an unsettling element into the team, one who will become a lever of change? Either way, these choices must be explicit in the hiring decision.
Third, get on the phone and talk to those in the know. Not the perfunctory reference check with restrained executives, but less rehearsed conversations with those likely to provide unvarnished feedback, like peers and subordinates. These overlooked sources are often the most informative.
And fourth, hire those about whom you have inside information, especially ex-employees. Some favored employees might have departed temporarily to greener pastures. Don't hold it against them if they're good. Or, follow the lead of some companies that - even during layoffs - tether their laid off employees to the company. Charles Schwab Corp. offers $7,500 to any ex-employee who is rehired, or Accenture offers 20% of salary and full benefits as a sabbatical to managers laid off, in case they want to rehire them.
There's a lot of built in risk in hiring. Why not stack the deck in your favor?
REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu.
Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the Center for Digital Transformation, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.
