Having the responsibility of hiring, firing and training can be difficult. A business is often only as successful as its weakest employee. This puts a lot of hiring pressure on the human resource department. They are tasked with finding the best employees that fit the minimum requirements, personally fit with the company?s mission plan and are able to successfully learn the required tasks of the job. A few of these requirements can be difficult to gauge, just by meeting with an employee candidate a few times. This becomes even more difficult if you are not experienced in recruiting qualified candidates.
A poor hiring decision can result in many negative results for the company. The company is likely to suffer from the poorly executed skills of the hired professional. Depending on the situation, it can bring down the rest of the employee?s morale. This can further result in loss of productivity in the business. Additionally, it can be very expensive to hire and train an employee, only to have them not work out in the specific position. This forces the company to continue to pay the expenses of hiring and training, until a qualified candidate that fits with the company is found. A company can save a lot of money by putting more care and thought into the hiring process, and reducing the amount of employee they try out.
There are many reasons that a human resource professional might see an employee candidate as a viable employee option, only to have them end up being a terrible fit. A recent survey by Robert Half showed that one third (36%) of 1,400 executives surveyed felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match. The second most common reasons (30%) was unclear performance objectives.
The hiring process takes place over a short period of time. This is often not enough time to accurately gauge all of these important aspects of the potential candidate. HR recruiters may also be tasked with hiring many high level positions, further reducing their amount of time on each possible candidate.
The U.S. Department of Labor estimated that the average cost of a bad hiring decision can equal 30% of the first year?s potential earnings. Executive HR search firms can reduce these costs by carefully placing each executive level position. Executive HR search firms are specialized in the selection of executive level positions and have the ability to spend more time with each candidate. This often results in better hiring decisions and less employee retention.
Some companies may attempt to hire based on diversity. Diversity has shown to provide successful results. McKinsey?s research shows that gender diverse companies are 15% more likely to outperform their peers and ethnically diverse companies are 35% more likely to do the same. An HR company that is limited with time or job search capabilities may find it difficult to hire based on diversity. Executive HR search firms have access to many job marketing sources, allowing them to provide the company with a more diverse employment pool.
Outplacement companies may also save a large business money by handling all of the HR tasks. Employees who are required to take on boarding orientations to their new position are more likely to stay at their job and are more satisfied with their job. Outplacement consulting companies have the ability to properly train and provide this onboarding process to the new employees. The executive HR search firms can also take over the role of the human resource department. A human resource executive search could also provide your company with better human resources professionals who can handle a lot of these tasks for your company.
A lot goes into the hiring, firing and training process of any business. A company can take a huge financial hit when poor employees are hired. Outsourcing the human resource hiring tasks can decrease poor decisions and increase company success and employee satisfaction. Executive HR search firms can also save money by providing onboarding classes and hiring better human resource professionals for the company.
