It’s virtually impossible to have a 100% strike rate when hiring, but as every human resource professional knows, a wrong hire can be an organisation’s worst nightmare.
The cost of a bad hire can go up to five times that employee’s annual salary , according to a study by Society for Human Resource Management. And companies are doing the best they can to minimise the damage, whether it means investing in training or even in mentoring.
“Wrong hires -whether they be cultural mismatches within the overall organisational framework or lacking in necessary skills -cost companies very dearly because investment in their hiring and training goes to waste,“ said Kevin Freitas, director -talent sciences at InMobi.
At Motilal Oswal Financial Services, bad hires were calculated at approximately 6-7% of 700-odd employees recruited in the past year. “New employees upload their KRAsgoals after a discussion with their reporting manager on joining the organisation,“ said Sudhir Dhar, director and head -HR and administration, MOFSL. Employees who are unable to fulfill these and are not confirmed after the completion of six months undergo a performance enhancement plan. At the end of a specified period, the performance is reviewed and if found satisfactory , the employee is retained. In cases where the employee is unable to perform, he or she is asked to resign. This, said Dhar, helps the com pany maintain its quality workforce.
Out of 250-odd people hired at executive and senior positions at the Bhartiya Group last year, about 4-5% turned out to be wrong fits for the job, and these were mostly cases of cultural mismatch, said Alok Nigam, senior VP and CHRO. A gap in explanations of job profile and company culture was to blame, he added.
SV Nathan, senior director and chief talent officer, Deloitte in India, takes a pragmatic view of wrong hires. “On a general level, approximately 5-10% of people recruited by an organisation can turn out to be wrong for the job.The pressure of hiring in high volumes in a limited period can ensure the quality of hires is compromised.“
At Mercer, detailed reference checks and comprehensive mentorship have been put in place to bring down the number of wrong hires. In any given year, out of the total number of employees hired, about 2-3% perform be low expectations. However, personalised support and extensive coaching can go a long way in dealing with the problem, said Anish Sarkar, country leader, India consulting business.
Bad hires have hit the e-commerce sector, too. Among the 100-150 employees hired by FabFurnish in the past year, almost 10 12% of them turned out to be wrong fits for the job.
Shilpi Shukla, head strategist at FabFurnish is, however, upbeat about weeding out bad hires. “For future hires, we are making employee reference checks a must while recruiting candidates with a few years of work experience.“
With company time and hiring expenses at stake, constant efforts are made to correct the problem of wrong hires . “An adjustment of expectations is essential,“ said Nigam.
At Deloitte, managers are assigned to help fresh recruits navigate the career traps of under-performance. Career mentors are also provided for insights into the industry and work functions.“It is impossible to bring the number of wrong hires in any company down to zero,“ says Nathan. “However, with training, personalised attention, and constant coaching, it is possible to bring the numbers down.“
An open dialogue needs to be created between senior management and the employee on where improvements can be made. “Degrees don’t always guarantee skills,“ said Rituparna Chakraborty , president, Indian Staffing Federation. “Recruiters need to develop specific parameters for hiring, and interviewers should look beyond resumes. Openness and honesty during the on-boarding and induction processes should be encouraged.“
Source: Economic Times
Date: 16th June 2015