Risk & Business Magazine General Insurance Services - Fall 2020 - Page 14

HIRING APPROACH HARVARD BUSINESS SCHOOL SAYS: “Your Approach To Hiring Is All Wrong” If you’re a CEO, HR director or hiring manager at any level, your biggest headache is bad hires. This article documents how bad hiring is in almost all companies, and I offer proven fixes to the many problems. Recent Harvard Business School research was reproduced by SHRM, and yes, the title of the article is: “Your Approach to Hiring is All Wrong.” I add this: Topgraders’ approach to hiring is not at all wrong, so I quote the article (bold) and then explain the Topgrading solutions (italics). BUSINESSES HAVE NEVER DONE AS MUCH HIRING AS THEY DO TODAY. THEY’VE NEVER SPENT AS MUCH MONEY DOING IT. AND THEY’VE NEVER DONE A WORSE JOB OF IT. I don’t know if it’s worse, because since Adam and Eve hiring has been awful. Our research shows only 25% of people hired in small and big companies turn out to be the high performers CEOs want. THE BIG PROBLEM WITH ALL THESE NEW PRACTICES IS THAT WE DON’T KNOW WHETHER THEY ACTUALLY PRODUCE SATISFACTORY HIRES. ONLY ABOUT A THIRD OF U.S. COMPANIES REPORT THAT THEY MONITOR WHETHER THEIR HIRING PRACTICES LEAD TO GOOD EMPLOYEES; FEW OF THEM DO SO CAREFULLY, AND ONLY A MINORITY EVEN TRACK COST PER HIRE AND TIME TO HIRE. Companies do ROI analyses of everything they buy… except the most important thing: Talent. Topgraders DO measure quality of hire, rigorously. At TopgradingCaseStudies. com dozens of large and small companies improved the percent HIGH performers hired from 36% to 85%. HIRING TALENT REMAINS THE NUMBER ONE CONCERN OF CEOS IN THE MOST RECENT CONFERENCE BOARD ANNUAL SURVEY; IT’S ALSO THE TOP CONCERN OF THE ENTIRE EXECUTIVE SUITE. Our research shows the same – the #1 headache in the C suite is bad hires. EMPLOYERS ARE MISSING THE FOREST FOR THE TREES. OBSESSED WITH NEW TECHNOLOGIES AND DRIVING DOWN COSTS, THEY LARGELY IGNORE THE ULTIMATE GOAL: MAKING THE BEST POSSIBLE HIRES. Our Topgrading Cost of Mis-hire Form is the most downloaded (just google it) and should be used by all companies. Our research shows even at the midmanagement level, a mis-hire costs five times salary plus 200 hours “wasted.” ONCE PEOPLE ARE CANDIDATES, THEY MAY NOT BE COMPLETELY HONEST ABOUT THEIR SKILLS OR INTERESTS— BECAUSE THEY WANT TO BE HIRED— AND EMPLOYERS’ ABILITY TO FIND OUT THE TRUTH IS LIMITED. Our research shows at least 40% of resumes and interview responses contain lies. The Topgrading Truth Motivator shows which resumes are accurate and assures honest responses to your interview questions. BE WARY OF VENDORS BEARING HIGH- TECH GIFTS. ON AVERAGE, COMPANIES GET FIVE TO SEVEN PITCHES EVERY DAY—ALMOST ALL OF THEM ABOUT HIRING—FROM VENDORS USING DATA SCIENCE TO ADDRESS HR ISSUES. THESE VENDORS HAVE ALL SORTS OF COOL SOUNDING ASSESSMENTS, SUCH AS COMPUTER GAMES THAT CAN BE SCORED TO PREDICT WHO WILL BE A 14