December 2006 Vol. 3 No. 11



 
 

 

The newsletter is shorter this time...I hope you like this new format.  We hope this makes it faster and simpler to read.  And here we are again at the end of a year.  We all hope it has been a good one for you, and we all send our greetings for a happy holiday season and a very prosperous, peaceful new year!

HOW TO AVOID THE MOST COSTLY HIRING MISTAKES, PART 1

 

The two most costly hiring mistakes are:

 

1.  Hiring the wrong person, the one not suited for the job (Mr. or Ms. Wrong);

 

2.  Not hiring the right person, the one with the potential to be a great performer (Mr. or Ms. Right).

 

            Each of these hiring mistakes can have devastating consequences.  In order to give each the attention it deserves, this month’s newsletter will cover how to identify and avoid the first hiring mistake in the list above, and January’s newsletter will be devoted to how to identify and avoid the second one.

 

To begin, let’s define who the wrong and right people are.  In your mind, make a list of all the employees you have ever had.  Now rank them, starting with the best employee, and then the next best, and so on, right down to the employee you most deeply regretted hiring.  Use whatever criteria seem most important to you.  Next, we are going to assume that the name at the top of your list, the best employee you have ever had, is your Mr. or Ms. Right.  Similarly, the last name of your list will serve as the prototype for your Mr. or Ms. Wrong.  With this in mind, let’s look at the costs associated with hiring Mr. or Ms. Wrong.

 

The Costs Of Hiring Mr. or Ms. Wrong

 

1.  Mr./Ms. Wrong will probably take a little longer to get through training or familiarization with the new job.  He or she may make more “unnecessary” mistakes (that is, mistakes outside the normal range of expected mistakes, mistakes also known as “stupid” mistakes), both in the training/familiarization phase and afterwards.

 

2.  Mr. or Ms. Wrong’s productivity may lag behind what you expected.  Mr. or Ms. Wrong will always have excuses for his or her poor performance, but improvement will usually take longer than you expect it to, if it happens at all.  In addition, Mr. or Ms. Wrong’s poor performance may have a negative effect on the work team’s morale.  Aside from any bad attitudes Mr./Ms. Wrong may have, your productive employees will likely be offended by the fact that Mr. or Ms. Wrong’s poor productivity tends to slow the team down.  Remember, the “Convoy Principle” says that the convoy can only go as fast as the slowest boat.  Adding a “slow boat” to a rapidly moving work team means that the slow boat will probably not win any popularity contests with the team.

 

3.  Your employees who have client contact are your ambassadors to clients, potential customers, and the business community at large.  If Mr. or Ms. Wrong has client contact, he or she may end up damaging your company’s reputation.  In the worst-case scenario, some clients may see Mr. or Ms. Wrong as representative of your company and decide they want a better quality purveyor.

 

How Does This Hiring Mistake Happen?

 

Not on purpose, that’s for sure.  Yet hiring the wrong person does happen and there are two main reasons for it.

 

#1.  Empty-Position Pressure

 

The pressure to fill the vacant position gets to you.  The position is critical and the longer it goes unfilled, the more of a drag it is on the company.  The pressure to get someone – anyone! – placed in the position builds and, as the pressure builds, the ability to evaluate applicants objectively diminishes.  You start thinking, “This position doesn’t require a rocket scientist, so stop being so picky.”  Applicants you wouldn’t have given a second look earlier begin to look acceptable.  In fact, if you squint your eyes enough when looking at the applicant’s downsides, then the applicant’s pluses begin to really stand out.  Pretty soon you will have convinced yourself that the applicant in front of you is the person for the job, despite some serious shortcomings on his or her part. 

 

#2:  The Halo Effect

 

The “Halo Effect” occurs when we encounter a person with whom we share a valued experience.  When this happens, we automatically feel a connection to that person.  This connection results in our attributing all sorts of positive attributes to the person based solely on the connection we feel and almost always without being aware of the reason we have done so.  For example, an applicant’s resume indicates that he went to the same college that you attended and, in fact, he was in your much-beloved fraternity.  The applicant’s stock automatically goes up in your eyes.  “He must be a heck-of-a-guy,” you find yourself thinking, “In fact, just the sort of guy I’ve been looking for.”  You have a great time in the interview re-living college days, which results in your learning a lot about his college experiences but probably less about his job-relevant qualifications for the job:  how relevant is the applicant’s work experience?  Does his education and training suit him for the job?  Is he likely to get along with his prospective boss, coworkers, subordinates, purveyors, etc.?  Many of these questions go unanswered or only partially answered.  Your reasoning may be as follows:  You value your own experiences in your fraternity and the applicant “obviously” valued his fraternity experiences.  You turned out pretty well in this company, so that means that, if hired, the applicant will turn out pretty well in this company also.

 

Awareness, Awareness, Awareness – The Way To Avoid Hiring Mr. Or Ms. Wrong

 

You can avoid making hiring mistakes primarily by keeping yourself aware, at all times, of the subtle pressure to make them.  You may want to go so far as to tape a note where you can see it of the following two kinds of awareness.

 

            Avoid Empty-Position Pressure by Maintaining an Awareness of the Pressure

 

Maintain an awareness of the fact that simply filling the position with a warm body is a good way to create problems for yourself down the road.  The odds are you are going to be spending lots of time dealing with the problems Mr. or Ms. Wrong creates, and that they have the potential to be greater than the problems associated with the vacant position.  Remember that one way to decrease “empty-position pressure” is to cross train employees so that if you are suddenly faced with an open position, others are familiar enough with it that the workload can be split among several people until the position is filled.

 

            Avoid The Halo Effect by Maintaining an Awareness of the Halo Effect’s Power

 

Maintain an awareness of the fact that we are all vulnerable to the Halo Effect.  When you meet someone from your old home town, your old military outfit, or from some other shared and valued experience you have had, the automatic response is to warm to the person and start attributing all manner of positive attributes to him or her.  Use your awareness of the Halo Effect to desensitize yourself to its effect.  A good way to do that is to make a list of the experiences you have had that you value highly enough to put you at risk of falling under the “Halo Effect” with an applicant.  Here’s an example of a list that might apply to you:

 

· Someone who is from your home town

· Someone who attended the same college you did

· Someone who has the same, or similar, military experience

· Someone who has the same political attitudes and values

· Someone who shares your enthusiasm for a particular sport or sports team

· Someone who seems so much like you that he or she can finish your sentences (this is a really subtle one!)

 

In fact, any point of view that you value highly has the potential to create a “Halo Effect” when you meet an applicant who also feels the way you do.  When this happens, remind yourself that in spite of this connection, you still need to verify the work-related requirements of the job in question.

 

            Hiring Mr. or Ms. Wrong can create problems that ripple throughout the company.  To avoid these problems, take heed of the inscription that is engraved on a patriotic statue in Washington, D.C.: “Eternal vigilance is the price of liberty.”   Eternal vigilance is also the best way to avoid hiring Mr. or Ms. Wrong.

 

Next Month:  How to avoid the other most costly hiring mistake – Not hiring Mr. or Ms. Right.

Remember, People are not your most important asset!

          The RIGHT People are!

To hire the best, test!

            To reveal management potential, test!

To diagnose problem behavior, test!

 

Best regards,

kurtsignature

Kurt G. Helm, Ph.D.

 

Phone Toll Free 800-886-4356

Email:   khelm@helmtest.com

Website:    http://www.helmtest.com/

 

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© 2006, Kurt G. Helm, Ph.D.  All rights reserved.  You are allowed to use material from this newsletter in whole or in part provided that you include attribution in the following form:  “By Kurt G. Helm, Ph.D., of Helm and Associates, Inc.  Please visit our website at http://www.helmtest.com/ for more information about how to avoid hiring mistakes by using pre-employment testing as part of the applicant evaluation procedure.”