The Ups and Downs of Business Require Hiring Intelligence

Businesses spend a lot of time recruiting and hiring, but according to some prominent management experts, they don’t do a very good job of it.
Companies today focus on passive job candidates, they try to recruit as many people as possible, they outsource their recruiting, they use applicant tracking software and vendors who claim to find the best person for the job using a plethora of high-tech tools.
The big problem with all of this is that no one knows whether all of these methods actually lead to making a good hire. Companies just don’t monitor whether their hiring practices work or not. They don’t look at how much it costs to hire someone, or how long it takes.

Some Problems with the Current Practices

1. Hiring mostly from outside.

Only about one-third of companies today fill positions through promotions. But going outside the company creates problems.
First of all, companies are looking for workers who already have the skills and experience needed, so the company does not have to train them. But these kinds of workers are harder to find.
This also creates more turnover because companies are going after people who work for their competitors. In fact, the reason most companies hire today is because of poor retention.
Not only that, people brought in from the outside take longer to get up to speed than those hired from within. And those inside the company are focused more on their next job. It disrupts the culture.
To fix this, companies need to put more emphasis on hiring from within. They need to compile data on the number of openings that are filled internally and post all job openings internally as well.

2. Inefficiencies in the hiring process

Job requirements need to be more realistic, according to HR experts. Now, companies are throwing everything they can think of into the job description, and then complaining about the poor quality of candidates when they don’t meet all of the job requirements.
Companies also spend too much effort on passive job candidates. What interests passive candidates most in a new job is simply money. Active candidates, on the other hand, are looking for more challenging work and better opportunities. They want to improve themselves.
Referrals are a very popular way to find new hires. But research is showing they are no better than other job candidates.
Employers are also trying to get a large candidate pool for job openings, but more isn’t necessarily better. It costs more money, takes more time, creates more legal risks. Employers should rather aim for a smaller but more qualified pool of candidates.

3. Trying to Be Everything

Companies sometimes do a poor job of evaluating candidates. Most HR experts agree that testing standards skills is one of the best ways to assess candidates, but few companies do it, and when they do, they often ignore the results.
With advances in technology, there are now many firms that promise good hires through the use of data science, such as using computer games as predictive models. But here again, there is a dearth of evidence about its correlation with job performance.
HR experts recommend overhauling the hiring process to focus on the kinds of questions that determine good performers – questions about their past performance and about their ability as it relates to the duties of the job.

Looking to Take Your Business to the Next Level?

If your company is looking for people who can make a difference, contact Opti Staffing. We will work with you to learn about your business, your mission and values, your skill needs and your culture, so we can provide you with workers who will give you the best return on your investment. Give us a call today.