Five Frequent Hiring Mistakes — and How to Avoid Them

The employment market has obviously changed substantially over the last eighteen months due to the economic upheaval, but many organizations have still found the need to hire new employees, and as the economy improves, we’re sure to see much more hiring. According to the “SHRM Leading Indicators of National Employment®” hiring is actually up on an annual basis nationwide for the fifth month in a row. In March, the percentage of companies that are hiring in manufacturing (53.3%) will reach a level not seen since June 2008; in the service sector, the percentage of companies that are hiring (38.0%) is the highest since July 2007.

 With job applicants still in abundance due to high unemployment, it’s especially easy to make these common mistakes, which can be costly, time-consuming, embarrassing for your organization’s image, and lead to poor employee morale.

1.      Forgetting about R-E-S-P-E-C-T

Respect is an important part of any business – but how does it apply to recruiting? It starts with a simple acknowledgement of receiving a resume. Following up with every candidate may seem like a time-waster, especially when you might receive 200+ applications to a Craigslist ad, but there are many easy ways to let applicants know you appreciate the time they spent applying for a job with you. Following up after interviews is especially important, even a quick email to let a candidate know she wasn’t selected. Remember to treat applicants as if they were not only prospective employees, but prospective customers. Here’s a biting look at this mistake from the applicant’s point of view: http://cityroom.blogs.nytimes.com/2010/01/22/complaint-box-the-e-snub/?sudsredirect=true

2.      The Overstuffed Job Description

Ever heard the phrase “Jack of all trades, master of none”? It’s not uncommon after an employee leaves or is laid off, to have his job responsibilities spread out among other employees. After doing this a few times, you risk creating a job with a combination of skills and experience that may be rare to find, or may even be incompatible. Later when you are looking for an Accounting Manager who has extensive industry-specific extensive marketing skills… will you be able to find that person? (You get the idea.) You may look so hard to find this unique combination that you neglect to consider applicants that have the core skills and attributes for long-term success.

3.      No Time for References

Unfortunately, many applicants inflate their resumes, just hoping to have a better chance for a job. If you are hiring in this economy, you’ve probably held off doing so for as long as possible.  After sifting through those 200+ resumes and squeezing in interviews around your own deadlines, references can become an afterthought.  Hiring the wrong person without checking references can be costly – think about the time and expense of firing and then hiring and training another new person, increased unemployment rates, or potential lawsuits for breach of contract or wrongful discharge. Even worse, an injured employee could bring legal action for negligent hiring practices, if for example your new employee has a history of workplace violence, which you could have known if you had done reference and background checks. In the interview process, you only meet a candidate for a brief time – think of it as the “tip of an iceberg.” Make sure you know who you’re bringing into your organization.

 4.      The Pay Trap

With a tight budget, you don’t want to pay more than you have to when hiring a new employee – but what does that mean? If a typical salary for a position is $18 – $22/hour, you’ll probably find people who are “willing” to take $12 /hour, because they have been unemployed for a long time and really need a job. It’s reasonable for you to try to save money, and to offer a lower rate of pay – and employees understand that. But paying significantly below the normal range the message to the new employee is that you are taking advantage of their situation. Don’t be surprised when they take advantage of you, for example, having low productivity or quitting as soon as they find a better job. The money you thought you were saving goes out the door, due to the costs hiring and training another new person, and the impact on morale. Employees do talk about their pay, and other staff members may empathize with the employee who feels taken advantage of. Avoid this common mistake by knowing the true market rate when hiring.

 5.      Not Looking Within

Most of us like the concept of promotion from within, but the concept presents its own problems. If your operation is running lean, promoting one of your star performers (let’s call him Tim) means having to train two new people – Tim, and his replacement, Janet – which can be costly, time-consuming, and risky. On the other hand, your competition might have an eye on Tim, who would probably be unhappy if you hired someone over him if he was qualified to do the job. You could save a valuable employee, and save time and money, by gradually shifting new responsibilities to Tim and then hiring Janet at a later time. This requires collaboration with Tim and developing an action plan and new job descriptions, not only to avoid confusion, but to properly assess Tim’s readiness for promotion. Don’t overlook this opportunity for a win-win solution to hiring.

There are surely many other problems that can arise in the process of hiring. Our budgets will continue to be painfully tight as the employment market turns around, and of course it may be a while before our local economies improve. As tempting as it might be to take shortcuts or take deeper cost cuts in the hiring process, these five mistakes point out some of the pitfalls. When you do start to think about hiring, don’t let these costly mistakes happen to you – take the time to do it right, and get professional assistance if you need it with reviewing and acknowledging applicants, determining competitive and appropriate salaries, job descriptions, and checking references.