IN THIS ISSUE:
How to Avoid a
$600,000 Hiring Mistake
Many of my clients have recently shared
their "war stories" on a hiring decision they wish they
never made. One CEO that I work with estimates that he lost
$2M in revenues and opportunity costs last year due to a
COO hiring mistake. In an upcoming article for Software
Sales Journal, author Barry Shamus estimates that the cost
of one hiring mistake is roughly $605,000 without counting
the cost of low employee morale or lost customers. (If you
would like a preview of this article, please email email
us) Regardless of what estimates you believe, the basic
principle has not changed: Reckless hiring decisions can
be a big hit to your bottom line.
Now the good news: many of my clients
have already taken preventive measures for the new year
by implementing stronger hiring processes for their key
executive positions.
Here are 4 preventive measures you can
do to implement a hiring "insurance policy" against bad
hiring habits:
1. Get clear on your hiring process.
Believe it or not, many companies in the $5M-$100M revenue
range have no hiring process and just "trust" that their
recruiter will do it for them. What is your process? Does
everyone in your company follow that process? Time is one
of the few commodities we can control in our lives as leaders.
Do you want to waste that precious time interviewing poorly
qualified people?
2. Ask yourself "what are the non-negotiable,
critical requirements for this job?" If you are hiring
a COO, what does that person have to consistently prove
they can do, and have successfully done in the past? You
will come up with 5-10 requirements that everyone on the
hiring team needs to agree to assess.
Example of a bad critical requirement:
Can work at a fast pace.
Example of a good critical requirement:
Has successfully managed and completed critical tasks in
a fast paced work setting.
3. Build interview questions that assess
that person's ability to meet those critical requirements.
Throw out the old fashioned questions that don't dig for
good data, such as: "What do you see yourself doing in 5
years? What do you enjoy about your work?" Nice coffee conversation,
but not good interview questions. Remember, your job is
to find data that proves they fit, or don't fit, those critical
requirements.
Example: You are hiring for a COO
position. Critical requirement: Has successfully implemented
an accounting system and hired a team to support that system.
Interview Question: "Please step me through the process
you used to evaluate accounting software in your position
at ABC company."
4. Implement tools and systems that
have worked for well established, successful companies.
One example is the book/audio series, "How to Hire the Perfect
Salesperson" from Selecting Winners. These tools are relevant
for any key executive position, not just salespeople.
If you would like to order any of the
Selecting Winners tapes, books or tools, please use this
link: http://www.automateyourwebsite.com/app/aftrack.asp?afid=65988
(Barry Shamus includes some excellent
interview questions you can use as you build those critical
requirements) I've recently signed up as a Selecting Winners
affiliate because I have personally used these planning
tools for over 5 years, and they work.
Refreshing your hiring system may be one
of the biggest cost-saving decisions you make this year.
Imagine what new projects and client initiatives you can
create with that $600,000...
--Lisa Nirell
http://www.energizegrowth.com/
