Reduce Your Hiring Risk Through Managed Staffing Initiatives

One of the most costly, time-consuming blunders a business can make is picking the wrong person to fill a job.

How costly? The U.S. Department of Labor estimates that the average cost of a bad hiring decision equals 30% of the individual’s first-year earnings. The Society for Human Resources Management says it could cost up to five times a bad hire’s annual salary.

Whether a bad hire quits or is fired, these costs come from:

  • Revenue Losses—Including lost productivity for each week the position is vacant and during the learning curve of the new hire and those helping them.
  • Additional outlay costs—Including the paycheck of the person filling in, severance pay or unemployment compensation and COBRA for the departed employee, advertising for the  position and comprehensive background checks for short-listed candidates.
  • Man-hours expended on extra recruiting tasks—Including interview and payroll processing for the departed employee, sorting through resumes of new applicants and sourcing candidates, interviewing by multiple managers, orientation and training, including materials prep and the time taken by the new hire’s immediate supervisor.

How can you avoid costly turnover in the future? At the minimum, you’ll need to:

Follow a clear and consistent hiring approach

With your organization’s values in mind, conduct fair, structured interviews that include multiple people from the organization, and follow a standard ranking system to evaluate candidates. Skipping or rushing any of these steps can lead to errors.

Know the specific competencies you truly need

Outline exactly what the ideal candidate needs. What skills are required? How much does experience matter? What behaviors will he need in the role?

Screen for soft skills

It’s easier to teach someone the technical aspects of a job than it is to coach them to change their behavior. Assess relational skills and emotional intelligence through behavior-based questions and motive and reflection questions. Try to draw out information about how people handle conflict, mistakes and responsibility.

Onboard with care

The right onboarding approach can help you get immediate value from your new hire, and you can also communicate expectations of both performance and behavior. Don’t just hire someone and watch to see if they sink or swim.

Do you have time for all of this?

Many companies lose that money because they don’t have the time to properly screen, interview, vet and onboard candidates. Managed Staffing can be the answer. A Managed Staffing Provider can assume responsibility and accountability for your entire staffing function, from hiring and recruiting to managing temporary employees—even your vendors. They act as the central point of coordination to improve talent sourcing, selection, retention and productivity.

Find out what CSSvSource can do for you! Contact us today to learn more about our Managed Staffing Programs!