“No matter how good or successful you are, or how clever or crafty, your business and its future are in the hands of the people you hire.” Sony Corp co-founder Akio Morita
Tony Hsieh, CEO of Las Vegas-based Zappos, estimated that bad hires had cost his company over $100 million.
The Department of Labor estimates that the cost of a bad hire is 30 percent of the employee’s salary. That means for a $50,000 per year worker, a hiring mistake can cost the company $65,000.
FSR, based in Annapolis, Md., has moved to take the guesswork out of locating the right person for the right job. FSR creates the right match by using what it calls the C’s of success: competency, chemistry, capabilities. It all adds up to company cultural compatibility.
Hiring correctly is challenging in today’s environment and FSR can be a capable partner in helping make those decisions.
Colossal hiring mistakes have happened at even the most prestigious companies. One individual was turned down for employment by both Facebook and Twitter. That job applicant, Brian Action, eventually founded WhatsApp, a mobile messaging platform that was sold for $19 billion to Facebook in 2014.
A survey done in 2010 showed that only one-fourth of people worked in professions where they were using their current degree. An excellent example is Jason Shen, who studied biology, but is working as a product manager for a tech company. He delivered a TED talk that describes the challenges of hiring in today’s environment. “Current hiring systems are causing us to overlook people with incredible potential,” he said. “Many young people will be expected to do jobs they have never done before for the rest of their careers.”
His suggestions included expanding your search. Otherwise, the company will continue to get the same results it has been getting. One example is Major League Baseball’s Oakland A’s. This underfunded team managed to compete with the high-rollers in baseball by looking where its competitors weren’t. The A’s leaders combed the leagues for overlooked, underutilized players and won several division titles using this unusual method.
Another suggestion from Shen was to hire for performance. Sports teams have tryouts, so potential candidates should be asked to demonstrate their skills before they’re hired. Work samples are one of the best predictors for success on the job.
In his concluding remarks to companies, Shen said, “Let’s stop equating experience with ability and credentials with competence. Don’t settle for the safe, familiar choice and leave out someone who could be amazing.”
Hiring Good Employees
If your company or organization needs help in today’s challenging hiring market, consult with FSR for their advice.
To find out more about FSR and how they can help your business today, take a look at their Resource Library today.