Even years after the COVID-19 crisis, some businesses are still having trouble finding employees due to its effects on the labor force. However, amidst the lack of availability, it's important employers don't overlook the most sought-after characteristics in a candidate in their hunt to fill staff requirements. Pandemic or not, finding a qualified and eager employee is always a challenging task. The internet allows anyone to submit a resume, even if they’re not the right fit for the role. If you want to find the best member for your team, learn these tips for hiring the right employee for your business.
The Effects of a Bad Hire
To understand the true value of hiring the best candidate, it’s important to first understand just how detrimental a wrong hire can be to your business. Take a look at some of the consequences of a bad hire:
- Diminishing Employee Morale: If an employee doesn’t have the skills for a job, they can experience increased stress, which in turn breeds resentment for the company. This also leaves the rest of the team to pick up the slack, thereby lowering their morale.
- Decreased Productivity: A combination of decreased workplace morale and the lack of the hiree’s skills prevents them from completing tasks on time.
- Increased Turnover: Employees can grow a distaste for the bad hire enough to make them quit, costing you the loss of a vital team member.
- Reputational Damage: Not only will the decreased morale and higher turnover dampen an organization’s reputation, but their interactions with clients or contractors can sour other peoples’ perceptions.
Furthermore, there are financial stakes that accompany an inadequate hire. According to a study by CareerBuilder, the average cost of a single bad hire is around $15,000 due to a combination of disengagement and lack of skills.
Don’t Settle for Your First Candidate
Despite the tempered labor force, it’s important not to settle until you’ve found the right candidate, regardless of how desperate you may be for help. If the initial pool of candidates comes up dry, revisit the drawing board. A new hire who is unfit for the role may hinder your operations or create a devastating mistake. You may even wish to dive into your own team’s talent pool to fill a key position. Sometimes the best candidate comes from current employees in search of a new challenge.
Craft Your Job Description Around the Candidate
The best talent will be looking for a job description that frames their ideal career. You’re essentially marketing your business to the type of person you want to attract. This means identifying the traits you want to see in your ideal staff member and designing a pitch that appeals to them. A poorly crafted job description may attract unqualified candidates, creating a long list of resumes to sift through.
Search Beyond Online Applicants
According to the Harvard Business Review, 80% of employee turnover is due to poor hiring practices, so if your online hiring pool is shallow, you have other options you can pursue, such as:
- Hire Interns: If you’re running an internship program, you’re provided the perfect opportunity to test and train someone for the job without having to be concerned about comprehensive salary or benefits obligations.
- Visit a Job Fair: Set up a booth at a local job fair. You’ll encounter applicants who are genuinely interested in your company, and you’re able to catch an early glimpse of their personality before the interview phase.
- Use a Recruiter: A recruiter may be expensive short-term, but they can save your business time identifying suitable candidates for the position.
- Offer a Referral Bonus: Sometimes, the best employees are those referred by staff members. These team members tend to have an incentive to provide quality work on behalf of their referrer.
Having patience is the key to hiring the right employee, and seeking other avenues to obtain applications will only increase the likelihood of finding the right candidate.
Protect Yourself from Bad Hires with Business Insurance
Unfortunately, despite your best efforts, a bad hire might sneak through the cracks. Fortunately, there are business insurance policies that can protect you should you fail to notice a bad hire before disaster strikes. Some examples of policies that can keep you protected include:
- Workers Compensation: This policy is mandatory for employers in almost all states. Nevertheless, it’s an important policy to have should an inexperienced staff member become injured on the job.
- Professional Liability Insurance: This policy will cover legal expenses should a poor hire underdeliver on a client’s expectations. Professional liability insurance also protects your business from negligence on behalf of you or your employees.
- Employment Practices Liability Insurance: This covers job-related lawsuits and protects you from damages caused by wrongful termination, sexual harassment, discrimination, and breach of an employment contract.
When you consider and apply these tips for hiring the right employee for your business, you’ll be rewarded with a team of hard workers dedicated to cooperation and success. Of course, another means to ensuring your company’s safety is by investing in the right insurance policies. World Insurance agents are determined to protect companies on numerous fronts by outfitting them with the most suitable business insurance policies.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.