Why companies hire the wrong candidates.

BadHiresWhy companies hire wrong candidates:

Wrong hiring is usually done for one of the following reasons:

  1. Lack of a clear definition of a Successful Hire:

There is no clear documented definition of the behavior of a successful hire. You as the leader have not taken time and effort to write down a clear definition of success.
A Clear definition will include:

  1. How her/his success is going to be measured.
  2. How success looks like.
  3. What tasks are required to be done by the hire to allow measurement of success?
  4. What kind of behavior is expected towards others from the hire?
  5. What kind of behavior does the hire expect from others?
  1. Not giving enough importance to the interviewing process:

I have seen people starting with the interview process by taking the candidates CV in hand. There is no thought process to the interviewing, there are no skill tests!

Everything depends on the perception of the interviewer. In such cases usually candidates who are self-serving and who can manage their bosses get selected. These candidates know perfectly well how to be likeable. In fact they even disagree with the interviewer on a minor point, argue about it and then agree with the Interviewer’s point of view. This makes the Interviewer quickly happy and the candidate likeable.

  1. Not giving enough importance to the pre-hiring process:

It is always advisable to have enough cross-checking done of the skills and behaviors of the candidates using reference checks. It is better to be pre-warned about potential problems. Reference checks should be done using a pre-defined questions format.

  1. Replacement candidate required in a Short time:
    The current person is leaving and there is a short time to find a new person. In such cases you usually settle for the cheaper or the person who can join immediately – because getting someone on board is far more important than anything else.
  2. High Attrition Rate:
    Your company is losing employees at a very high rate.
    Part of the reason why this happens can be because:

    1. Your company does not have an environment where people do not feel significant, competent and likeable.
    2. The company culture/environment is such that people fear of being ignored, humiliated or rejected.
    3. People feel that the company lacks openness in work matters, does not make the employee feel included and does not give enough control to the employee in her/her areas of work.
  3. Skills-compensation gap too high:
    The skills you expect from the new hire and the compensation you can provide are not in sync with reality.

This happens when:

  1. Your Product/service offerings have turned into a commodity with Price being the only differentiator.
  2. Your policy of getting new business is based solely on low prices. The job market has increased the compensation of the employees you are looking for. So although you can find a person who is a proper fit on all counts, the compensation gap is too much. The gap between what an average candidate wants and what you can offer, or have been offering is big.
  3. You heavily depend on a single / small set of Customers :
    When your business depends on a small set of Customers, these Customers can dictate the prices you charge leaving you very little room for manoeuvre.
  1. Not enough candidates:
    Your industry is new or very small and so getting experienced candidates is a challenge. The time required to train for a candidate to be trained to deliver your company needs is very high. You do not have the time and money to train these candidates – so you look at the cheapest candidate with the hope that this will offset the money you spend on training her/himAs an owner do you find any more reasons why you hire the wrong candidates? Please post them in comments.

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