The Harvard Business Review reports that "as much as 80 percent of employee turnover is due to bad hiring decisions."

Why do most business owners and executives tell me that finding and hiring the right people is one of the most difficult challenges they face in their business? The reason is pretty simple: lack of a formal hiring process. Most people today hire on their gut feel or the candidate's personality. Managers and supervisors are willing to settle for a hire, because it is easier to "have a cheek in the seat" than to spend the required time upfront to put in place the right recruitment process.

Hiring is like any other business process. The hiring process must support your business strategy and goals, and once the process is in place, you must be willing to follow all the steps. From our perspective at Human Capital Consulting Partners, the following process steps will improve your odds of hiring and retaining the right people for your business.

1. Determine how the job will fit into the daily operation of your business. How will this job support your business strategy and goals in the short-, mid-, and longer-term?
2. Outline in writing the specific duties and responsibilities of the job. Be sure to determine what type background and experience is needed.
3. Develop the six to eight core competencies that are needed in the job.
4. Benchmark the job's compensation in the market place. Determine the appropriate base salary, incentive compensation, and other benefits being paid to similar jobs in your industry and geography.
5. Source candidates for your opening. Communicate through social networks such as LinkedIn, contract with a search firm, and/or send out messages to your business network.
6. Set up a review process and initial screening for the candidates who apply for the position. This process might involve the direct supervisor or human resources. They should review the resume, and then conduct a phone interview of the candidates who appear to have the right fit for the job. Invite those candidates who pass the phone screen into your company for a face-to-face interview.
7. Prepare for the face-to-face interview. Who will be involved in the interview process? Will you conduct a panel interview? What interview questions will be asked of the candidates? Will you have a final candidate come back for a second interview?
8. Select the right candidate for the job.  How will you know you have the right person for the job? Does your candidate meet the "fit quotient" for your company?  (If not, take a look at our side note in this newsletter.) Should you consider conducting a behavioral-based assessment on the candidate? Who will negotiate the terms and conditions with your potential new employee?
9. Implement an on-boarding process for new hires. The first 90 days will determine success or failure of most hires.  Be sure to communicate your expectations and outline the specific accountabilities on what the new hire will be measured against during the first year. Should the new hire have a mentor or an outside coach to ensure success in his or her new role? 

Regardless of your industry, revenue, or number of employees, the people or human capital that you hire will determine the success or failure of your business. So why not treat your hiring process the same as you do your IT, Finance, and Operations processes, and ensure a thorough and thoughtful hiring process.

Sincerely,

What Is Your Company Fit Quotient?

Why is that it after spending months recruiting the right employee, and often within six months, the employee and the company decide to part ways. Over the years my clients, as well as former employees, have told me the reason is "they didn't fit the organization." 

Fit can be defined differently depending on who you ask, but in my experience, it is the cultural characteristics and expectations that exist in an organization.  

These cultural characteristics that have been built over a period of years must be part of the formal job interview process. Yes, you need to understand the candidates job experiences, how they managed a project or team of people, why they are looking for a new role, and how they might help your organization grow and prosper. However, you must also interview candidates in line with your company's specific fit quotient.

At Human Capital Consulting Partners, we recommend to our clients and prospects that you use the following process to determine your company's specific fit quotient.

1. Define your cultural and core values.
2. Create a set of specific interview questions tailored towards your culture and core values.
3. Select one or two people from the company whose role during the interview process will be to determine candidates fit with your culture.
4. Review the final candidate with your peers evaluating the fit quotient, skills, background, and relevant experience before making a final offer to join your company.
5. Coach the employee when hired on how to best transition into your company during the first 30 to 90 days. 

The above approach is another way to assist organizations in hiring and retaining the right talent to ensure business success in the short-, mid-, and long-term.

If we can provide support in helping you develop your fit quotient, please contact us.