Joe Smith (not his real name) is interviewing for a sales representative position with XYZ Manufacturing Company.
They ask him questions about his experience and background, and eagerness to sell. He shows enthusiasm and excitement for the job, and gives examples of successful past experiences.
Joe seems like a good fit, and he’s hired. But after a while, it becomes apparent that Joe’s not performing as he should.
He’s been given a quota of $500,000, but he’s only doing $300,000 in sales, despite the fact that he has a good territory and has undergone extensive sales training. His demeanor is relaxed and laid back, and he shows little passion or motivation.
What went wrong?
I call it: “You interviewed Dr. Jekyll, but hired Mr. Hyde.”
The interviewee acted enthusiastic and excited, and gave examples of how he was successful, but he was playing the role of a passionate, energetic sales person like an actor in a play. This happens over and over at companies. Why? Because they hire the person who does the best interviewing — which I equate to acting — not the person who’s the best fit.
According to a 2012 article in Forbes titled, Hire for Attitude: An Interview with Mark Murphy, 46 percent of new hires fail within 18 months.
Bad hires create a myriad of hidden costs: Damaged relations with customers, lost business opportunities, high turnover rate with good employees, increased stress, time loss, and legal issues. Most studies say the average cost of a bad hire is 50-300 percent of a person’s salary depending on the specific position and level within the company.
One of the main reasons for this is that employers don’t know how to identify a person’s innate characteristics.
Innate characteristics include traits such as assertiveness, extroversion, and detail orientation. These characteristics remain stable throughout a person’s life regardless of time and circumstances.
Non-innate characteristics can change with time and circumstances, and thus have far less ability to predict fit and behavior. Non-innate characteristics include attitudes, values, energy level and personal interests. These traits are important, but can change. They’re also easier to determine with good interview questions.
Unfortunately, interviews alone don’t identify innate characteristics. A high-quality, scientific-based assessment does, and can reduce employee turnover from 75 percent to 25-50 percent.
In an Inc. article titled, How to Hire Great People – Every Time, Les McKeown points out that managers should treat the hiring process “as the most important strategic planning your company needs.” The reason: Every new employee can either make or break a company. Managers need to hire employees who will help the company grow and become more profitable, not bring it down.
McKeown listed four (4) tips. I’ve added some of my own thoughts and an additional fifth tip for hiring great people:
Bad hiring can set a company back in many ways and result in financial and legal challenges. Using tools to find the right hire, on the other hand, can reduce employee turnover, putting your company on the path to growth and success.