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Do HR Managers Care for Online Assessments in Recruitment? Evidently, “No”.

 

There are many blogs, articles, well-researched white-papers and seminars on the topic: “what is the cost of the wrong hire?” More or less every statistics on wrong hires claim that the cost of the wrong hire among executives is as much as 80% of annual salary. In case of senior managers, CEOs or CFOs the cost can run up to 150-200% of the annual salary.

If HR Managers did care for online assessments in recruitment; this loss of time, money, energy and human resources which are so valuable for a company’s sustainability and competitive edge, could have been averted.

Now, apart from monetary losses, there are other losses of bad hire and attrition. Let us probe what are the other costs of the wrong hire? And why should the hr managers care for online assessments in recruitment when there are few takers?

There are obvious 3 things that affect your productivity if anybody is wrongly hired. These are: Low employee morale, loss of experience and learning curve and all your company branding or employer branding goes wrong.

These 3 things can go fatal for the health of your company if in case the bad hire is a senior manager of C-level officers and managers. Until now all the cost calculations of bad hire have been done from the salary of loss of profit point of views. But think about this. Think from a different point of view altogether.

What about the cost when an employee shows arrogance and rotten attitude at the office, and spoils work culture. If the person shows up late at office frequently or remains absent repeatedly – what about the other employees of that department?  Are they not getting disengaged by and by? Do you not face disciplinary issues at work? An employee with a bad attitude may create diversity, racist and other cultural repercussions at the office.

The other thing is the loss of learning curve. A bad hire shows very little effort about learning newer skills and know-how about his job. He/she cannot be promoted easily as this person’s efficiency erodes over the passage of time. This employee starts de-growing and his/her subordinates get promoted.

Under these circumstances, this person in future must report his/her new boss who once was a subordinate. Surely the company loses faces. Also, there would be dissident among a section of employees. And lastly, the company is badly affected as this employee is not helping in value addition in terms of knowledge, skills, and attitude anyway.

Couldn’t you; as an hr professional and HR Manager, been able to avoid these situations; if you have cared for Competency-based online Assessments for predicting job-match in Recruitment?

When any senior manager or c-level officer or manager turns to be a bad hire and quits unceremoniously, it becomes a major PR disaster for the company. Newspapers, media goes Gaga over the exit and starts cooking up stories. In an office, it becomes a hot topic of grapevine gossip.

So, it becomes a cause of disengagement among promising candidates who dreamt to work for your company. They lose faith in you as their employer of choice. One bad hire can damage your employer brand. There can also be cases if any manager quits, he/she would be taking his/her invaluable team along the exit route. And moreover, there are instances in past when any CEO exits, with the appointment of new CEO- there is much bad-blood bath among company rank and files.

A 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 poor skills match. The second most common reason (30%) was unclear performance objectives.

Hiring and selecting candidates is not a cake walk. Care should be taken to harness data from exit interviews, performance and development multi-channel survey feedback to the very beginning that is onboarding surveys. Put due attention to employee-engagement surveys, conducting competency benchmarking of your company and creating competency-based job descriptions.  On the top of everything, HR Managers must pitch for online assessments in recruitment in their company even if there are few takers.

A prerequisite for minimizing the wrong hire is taking competency-based job-match assessments before you hire someone. A job competency focused human resource practice can be effective to nip the evil of the wrong hire in the bud.

We think this is a sufficient case about why the hr managers should care for online assessments in recruitment even when there are few takers.