The price of hiring the wrong professional

Hiring the wrong professional is expensive. We all know that. You incur in numerous expenses, some provided by law, with the termination of the employee. Not to mention the cost of the hiring process and of course the wasted time. Want to know how much it costs? 19.8 billion dollars. This is the result of a study by PwC and LinkedIn developed with the data from  companies in 11 countries, including the Netherlands, UK, Canada, Singapore, United States, Australia, France, Germany, India, China and Brazil.

The project was based on interactions of 277 million users and LinkedIn information from 2,600 customers of PWC. A crossing was made of this information considering that "terminated employees with less than one year of employment potentially represent an error in the hiring process." After all, if the process was well done, it is expected to stay longer in their jobs.

There is a discussion in the market regarding the permanence of staff for longer than one or two years on the job, especially with respect to the younger generations, their individuality, independence and little stability in jobs. However, it is definitely not reasonable to expect that a new employee be less than one year in a new position. Regardless of who initiates the shutdown process if the employee or employer, it is not really reasonable.

Hiring  processes will run well beyond a simple analysis of a Curriculum Vitae and interview. Currently, the amount of information available in social networks is a key factor for a good analysis of a candidate. Companies of all sizes and industries have increasingly used these public information on their processes for talent. And they are published by the candidates themselves, and their coworkers.

Admittedly, for a professional attain a full development into a new position, takes time to settle in and start producing, also known as onboarding. This process takes time. Companies have invested in facilitating this process that goes beyond simply following a checklist. It is important to understand that, in addition to the more common items obtaining an extension, provide a workstation or a line of cell phone, also need to take care of cultural adaptation. By doing so, we will streamline the process and make the new employee start producing earlier. And to ensure that the process to happen the way we want, there are methodologies and services that can be hired for this. An example is the IBM Onboarding.

To illustrate, IBM, just last year, contacted more than one million candidates around the world. And, with the analysis of social networks and some changes in HR processes, the cost of hiring fell approximately 40%. A few years ago, about 4 in 10 recruitment procedures needed the support of a headhunter. Currently, this demand has dropped to 10%. Other companies such as Natura and Nextel have also increasingly used social media in their hiring processes.

In short, hiring the right candidate is a critical process that demand enormous attention and methodology. The price to be paid by a erroneous hiring is very big. Times have changed and we need to go beyond a simple analysis from CV and one or more interviews. The use of the information published on social networks together with changes implemented  in HR processes can assist managers in finding the correct professional.