Why Does Hiring Suck? Part 1

Updated: May 8

Why does hiring suck? In simple terms...Too many applicants that have no business applying for a job in the first place. Of course, that's just the beginning.

Too many applicants equals:

  1. Too many resumes to review

  2. Too many phone screens to schedule and perform

  3. Not enough time to do this and your "day job"

My conversations with everyone involved in hiring confirms this to be, almost, universally true.

Why is this the case? The big driver is job boards that allow anyone to easily apply with the simple click of a mouse. The hiring company sees tons of applicants, but many don't meet minimum requirements much less have the appropriate experience or skills.

The HR generalist trying to narrow the list will either spend too little time reviewing each resume or stop completely once they have found enough that look good enough to screen on the phone.

What about all of the resumes we didn't get a chance to get to? Who did we miss out on by not reviewing them all? Or.... We took so long reviewing every resume that by the time we got to the phone screen, the best individuals had already found another job. Both scenarios are a huge miss.

OK, so everyone can identify with this dilemma. How else can you do it? You can hire more HR people or contract a third party recruiter but both strategies add significant cost.

The direct cost related to hiring is not insignificant. Most subscribe to a SHRM study that documents it being over $4,000. But the cost of a bad hire is much more significant. In a CareerBuilder survey the average cost of a bad hire was $15,000. Other studies put that figure closer to 30% of the individual's annual compensation. How is that possible?

Think of the associated cost of each below:

  1. Less than acceptable productivity from the individual

  2. Quality of work is lacking and now represents a potential liability

  3. Reduced morale of other employees who are expected to compensate

  4. Time/effort to document for justification to reassign or remove

  5. Time/effort to hire replacement

  6. Lost productivity during search for replacement

  7. Potential negative customer impact for poor service

We can debate the actual cost but no one can deny the material impact associated with making a poor hiring decision.

Why do most companies still go through a similar and painful process and can anything be done differently? Stay tuned for my next blog entry that highlights some innovative ideas!

Happy Hiring