“The strength of the team is each individual member. The strength of each member is the team.”
Phil Jackson (legendary NBA coach)
HR experts know that employees are the backbone of every business. Get a team of incredible talents working together, and success is inevitable. But how can you ensure that you only secure the right people for the job?
It all begins from the recruiting stage and is linked to your hiring practices.
The cost of hiring the “wrong” people
Losing an experienced staff member can be very costly for an organisation. The Society for Human Resource Management (SHRM) estimates that it typically costs a company an average of 6 to 9 months of an employee’s salary every time an employee is replaced.
While there are many reasons why an employee leaves a company, one of the top causes is simply because the employee was a bad fit for the position from the very beginning – and this can be directly attributed to poor hiring processes.
Superstars and super blunders
A company’s hiring process is directly responsible for introducing both “superstar performers” and “toxic workers” to the workplace.
You’ll definitely want to hire the former, as studies estimate that superstar performers can be four times as productive as average employees. It gets even better, as they also contribute to a positive workplace culture and attract other high-performing candidates.
On the other hand, a Harvard Business School working paper discovered that the cost savings of avoiding a “toxic worker” can go as high as US$12,500 (S$17,000). Additionally, these workers are not as effective in their jobs and may also affect other employees by “poisoning” the positive workplace culture that you could be trying so hard to build.
Creating and implementing an effective hiring process
This is why developing a robust, effective hiring process is a necessary investment. You need a hiring process that helps you to identify, attract and recruit the right candidates – highlighting potential superstar performers, while filtering out possibly toxic workers.
This investment will pay for itself with increased staff morale, productivity levels and retention rates.
So, how can you create an effective hiring process? There are various ideas behind this, but one principal guideline stands out – culture fit. Organisational culture refers to the core beliefs and behaviours shared by employees in a company, and “culture fit” determines the likelihood that a candidate will adapt to your organisation’s working environment.
Having employees getting along harmoniously with one another is the foundation of a positive and productive workplace.
Roles are temporary, culture is permanent
It’s simple – employees who fit well into an organisations culture are happier employees. They perform better at their jobs, enjoy higher job satisfaction, and are more likely to stay on and build their careers in your company. On the flip side, SHRM found that poor culture fit can cost an organisation between 50-60% of a worker’s annual salary (in turnover costs).
In today’s rapidly changing world, job scopes can evolve and even disappear entirely. However, your organisation’s culture is something that remains steadfast (not withstanding a complete business takeover or buyout, of course). Hiring a person who fits into your company culture should assure you that they are more likely to remain valuable in your business for years to come – and should they need to be reassigned, they’re more likely to fit into their new role smoothly.
Make “culture fit” a key part of your hiring strategy
The crux of an effective hiring strategy is incorporating your organisational culture into the process. Companies who actively market their corporate culture to candidates are more likely to attract the right candidates – superstars who will excel at their jobs and take the company to another level.
Recruiters must be able to recognise the key characteristics that indicate whether a candidate will blend into your workplace – and have the skills to persuade the best candidates to choose your business (over the competition).
How we can help
At Linktrix, we specialise in search and placement services at all levels. Our team has the expertise to pick out candidates that are not only well-qualified for your advertised positions, but who will excel when placed integrated into your organisation’s corporate culture.