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The Advisor’s Corner – Can I Afford a Bad Hire?

Can I Afford a Bad Hire?Question:

Can I Afford a Bad Hire?

StrategyDriven Response: (by Roxi Hewertson, StrategyDriven Principal Contributor)

Fact 1: No one can afford a bad hire!
Fact 2: Nationally, about 50 percent of hires, fail. Of those that succeed only about 20 percent are top performers.
Fact 3: 90 percent of failures are UNRELATED to brains and technical skills.
Fact 4: The cost of a bad hire is up to 2x the person’s annual salary and benefits… until you fire them or they leave. How much you lose depends on how awful they are and how much time, money, and productivity is flushed away in the meantime. Then… add another 2x to 2.5x their salary costs to replace them.
Fact 5: Turnover in any position costs you real money. Turnover of good people leaving because they don’t want to work with your bad hires, costs you even more.

Do I have your attention? This is not theory – it is fact. And yet… we hire most people and positions based on shiny new degrees and/or technical skills along with perceived or tested IQ. We now KNOW, for a fact, that EQ (Emotional Quotient/Intelligence) is far more important for success in most jobs, and definitely within leadership roles.

Still, we continue to hire and promote people, including leaders, largely for IQ and technical skill sets. “The best salesperson will surely be the best leader of other salespersons,” right? WRONG!

It just gets dumber and dumber. We keep getting the same lousy results and yet we have not substantively changed the hiring practices in most organizations. It is mind-boggling! I believe Albert Einstein had something clever to say about this phenomenon being related to insanity.

Whatever methods (legal and ethical of course) you use, you need to discover at least these SIX key things about your candidates BEFORE you hire.

A. Attitude: Is theirs one of abundance and can do, or scarcity and focused on obstacles?

B. Brains: Can they do the job or learn quickly how to do the job?

C. Character: What are their core personal values?

D. Drive: Are they self-motivated to achieve their goals and yours?

E. Experience: What have they done in the past that prepares them or makes them ready for what you want them to do now?

F. FIT: Will they truly FIT into your culture, your organizational values, help you accomplish your mission, and advance your vision?

If you said “NO” or “I Can’t Tell,” to even ONE of these questions about the candidate, do not hire that person. Seriously – don’t do it!

Trust the answers to your ABCDEF questions and trust your GUT. If the person doesn’t feel right to you or others, he/she probably isn’t right. In any case, it’s rarely, if ever, worth the risk to you and your team.


About the Author

Leadership authority Roxana (Roxi) Hewertson is a no-nonsense business veteran revered for her nuts-and-bolts, tell-it-like-it-is approach and practical, out-of-the-box insights that help both emerging and expert managers, executives and owners boost quantifiable job performance in various mission critical facets of business. Through AskRoxi.com, Roxi — “the Dear Abby of Leadership” — imparts invaluable free advice to managers and leaders at all levels, from the bullpen to the boardroom, to help them solve problems, become more effective and realize a higher measure of business and career success.


The StrategyDriven website was created to provide members of our community with insights to the actions that help create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results. We look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].

Engage your employees in the training process

Companies invest in employee training and talent development programs for one reason: to get results. The problem is that too often they see training as an “event” rather than a process, and they earn a miserable return on investment.

See if this rings true. You hire an outside consultant to conduct a two-day training session. Your expert trainer delivers a ton of value. Trainees give the session high marks. But a few weeks later you realize your people aren’t deploying the skills they were taught. You’re frustrated. Where are the results? Where is your return on investment?


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About the Author

Steve MeyerStephen Meyer is CEO of the Rapid Learning Institute, which provides bite-size e-learning to companies, nonprofits, educational institutions and government. Prior to starting the Rapid Learning Institute and its parent company Business 21 Publishing in 2002, Meyer was the Director of Publishing at The Hay Group, a leading HR, benefits and compensation consulting firm. At RLI he developed the model for six- to 10-minute “Quick Take” rapid learning modules. Meyer received his MBA from The Wharton School at the University of Pennsylvania.

The Best Jobs Go to the Best Educated People and Here is Why

Quite a bit of debate exists about whether education is obtained in school or through life experience. Looking at homes and families, the latter may reign supreme. However, universities, and the job market, often argue that a college degree is necessary to succeed in life and obtain a high paying job. Assuming that people can be educated in more than one way, what are some of the reasons why the best jobs go to the best educated people?

Education Blended with Common Sense
To succeed in the work world, people need to have a strong background in their field, but they also must exercise skills in common sense. Knowing the discipline provides the appropriate background information and the technical skills that are needed to succeed. However, the application of that knowledge often comes in the form of common sense. Exercising a blend of these skills allows workers to be confident, determined and strong in their decisions.


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About the Author

From her 25 years in business, Elizabeth Hill aims to pass on knowledge and skills gained in that time through her writing. She loves walks in the countryside, spending time with family and friends, and is ever so ‘slightly’ addicted to coffee.

The Secret to Successful Recruiting

Recruitment has always been a tricky business. So many times a candidate can sound like the perfect match on paper, only to prove a disappointment at interview. Then there are the even worse scenarios, where a candidate comes across both in real life and on paper as perfect, only to then not meet the criteria when actually in the job. There must be a way for recruiters to ensure that they hire only the best and most promising candidates, those who are almost guaranteed to perform and stay in a role for the long term.

While workplaces are swiftly becoming more and more advanced in cloud computing, using social media for marketing purposes, and generally becoming au fait with modern technology, there is one area which is sadly lacking when it comes to technological advancement. Despite the realization that computer software greatly enhances the efficiency with which businesses operates, the use of recruitment software is not widespread. The simple fact is that not many business leaders are aware that recruitment software can transform your HR practices for the better and make hiring a simpler process.

Why should you invest in software for your HR department? There are several reasons for doing so, each of which is detailed below.


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About the Author

From her 25 years in business, Elizabeth Hill aims to pass on knowledge and skills gained in that time through her writing. She loves walks in the countryside, spending time with family and friends, and is ever so ‘slightly’ addicted to coffee.

The Final Piece to the Quality Hire Puzzle

Your company’s hiring managers are working tirelessly to write accurate job descriptions. You’ve made interview checklists and performed background checks, but somehow several new team members are just not working out. And, it’s costing your company big. So, what went wrong? What can you do? First, let’s examine what exactly these bad hires can do.

Bad hires can wreak havoc

HR.com, the largest social network and online community of HR executives shares some eye-opening information about who you are really hiring. For instance, did you know that 53 percent of all job applications contain inaccurate information and that 34 percent of all application forms contain outright lies about experience, education, and ability to perform essential functions on the job? It’s activity like this that can really do some damage to your bottom line.

In fact, the U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30 percent of a person’s first-year potential earnings. So, for example, one bad hire with an annual income of $50,000 could equal a possible $15,000 company loss. Don’t you work too hard to have your company take a hit like that?


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About the Author

Greg MoranUtilizing more than a decade of human capital management, sales and leadership experience, Greg Moran is Founder and CEO of Chequed.com. Chequed.com is redefining the way companies hire with a singular goal… No Bad Hires. Ever. Their Predictive Talent Selection™ platform helps leading brands worldwide make hiring more efficient and data driven through cloud-based, automated, predictive reference checking. In partnership with the University at Albany, Chequed.com works with organizations to implement best practices in talent selection, which are scientifically proven to reduce cost per hire, increase quality of hire and improve organizational productivity. For more information, visit www.Chequed.com.