Isn’t eyes wide open the best way to approach life?
I’m going to give you the truth about avoiding mis-hires and avoiding the biggest landmines that will deplete not only your margins but quite possibly, and most likely, your company’s success.
Studies show that less than 10% of Startups succeed. So why do so many wait and risk getting it wrong before they get it right, and repeat history?
Talent Acquisition is a game. It can be a very slippery ride if not taken seriously.
There are ways to avoid the wrong hires and make the right ones, earlier. Let’s look at the #1 aspect to getting this right: the “Human-Opportunity Fit”.
That’s right: human first. Then opportunity.
I founded my company, Pendulum, on this very practice and it has yielded results none of my clients’ could have imagined, even for some of the greats like Linkedin and GoPro.
Think about it. Talent Acquisition is based on one major concept alone: human-to-human connection. That’s it.
No AI or technology can replace it. Why? In the end, there is only one factor that determines the outcome: the human connection.
So why are companies still bypassing the most significant steps to getting this defining piece right?
Let’s look at some data you can chew on
49%+ of hires in this market turn out to be a cultural mismatch
63% of hires end up being a total mis-hire
The cost of a mis-hire is substantial and can be calculated (on average)
4 times the annual salary for leads
6 times the annual salary for Senior engineers and sales reps,
8 times the annual salary for managers, and
15 times the annual salary for VPs and, up from there
I’ll put it into perspective to your bottom-line: you make a mis-hire on a Mid-Senior Engineer that is paid $ 180,000 annually, the cumulative cost of that mis-hire could be up to $ 800,000!
These numbers increase the earlier the company is in its stage of growth. Why? The earlier the company, historically the less investment they make in how to get hiring right. There’s a “winging it” mentality in startups that is very costly.
One bad hire sends a ripple effect across the entire company leaving a defining impact.
Most companies wait until they feel the pain of mishits to course correct.
You don’t have to.
Here are some ways to avoid getting hit from behind.
Know how to calculate Mis-Hire Costs: [and do it before you start to hire] This data is reflected in a thorough review of direct and indirect hiring costs such as: interviewing time (add up each interviewers cost per hour and multiply that by every candidate they talk to), side conversations about hiring [yes, this costs!], administrative costs, cost for outside agencies, background checks, travel costs for candidates, time and expense of all candidates, and relocation costs — if any. You can also look at severance, leave, unemployment pay, legal fees, outplacement fee, administrative costs, lost productivity, and impact on another employee’s production. Know what matters.
Invest in building a Bullet Proof Hiring Process: Companies that spend the time to ensure their hiring team delivers a market differentiating, connected and effective Candidate Experience will deliver results that align with the business and the candidates’ needs. It’s the win-win formula for success.
Create and Deliver a Differentiating “Candidate Experience”: 93% of the people I surveyed outside of the Silicon Valley had never heard of it. It’s one of the top keys to your kingdom. Make sure your talent strategy is supporting your candidate experience
Hire the Right Recruiting Partner: It’s a true skill, not an additive to another career. This is far more sensitive than companies invest time in. Know how to vet the right partner to deliver you only those candidates who are a complete fit and who have your best interest as well as the candidates. Anything other than this almost always leads to financial loss in places never expected.
Don’t want to pay the high fee? Who does and, the best don’t settle to charge less. The easy answer to justifying this partnership lies in the results of the metrics. Do your research.
How does human first, then opportunity fit work into this equation?
The right types of people, (hiring teams)
In the right places at the right times, (process)
Doing the right things right (skillfully capable)
Focused on mutual benefit (ability to assess current and future-fit and reciprocatory partnership)
Numbers don’t lie.
What would be possible for your company with the right hires, earlier?
Written by Pendulum Founder, Alana Fulvio. “America’s top early-stage startup Talent Acquisition Strategist and Advisor.”