The Best Treatment for Hiring Heartburn (Mike Chastain Commentary)

(Shutterstock)

The disruption from mis-hires weakens the hard-won esprit de corps of an entire company, is contagious and sets management to collective howling for an extra-large bottle of Tums.

Hiring heartburn is often self-inflicted due to weak candidate evaluations performed in the rush to fill openings because we often overlook our own most obvious shortcomings.

A mis-hire, according to the U.S. Department of Labor, can cost up to 30% of a first-year salary for nonmanagement hires and 50% for managers and increase the risk of legal action and damage to brand integrity, so it is crucial to adopt a hiring process that identifies mis-hires very early in the hiring process.

The best way to treat hiring heartburn is straightforward: Find a human capital management (HCM) system that provides a strategic approach to hiring, development and management of your entire team that maximizes skills, knowledge and experience of all team members.

A good HCM program combines a robust applicant tracking system (ATS) with adaptive performance assessments (APA) that measure cognitive and noncognitive skills.

Here are some key components of an effective HCM program:

► Talent identification: Identifies candidates, based on job descriptions, who possess the skills and experience you need and are good fits into the organizational culture.

► Talent development: Includes training, mentoring and coaching to the opportunities for skills enhancement of each team member and explains clear and attainable paths to promotion.

► Talent retention: Emphasis on a positive work environment, which includes encouraging managers to understand the needs and aspirations of each team member, is critical and should include the top reasons to join the team, such as employer-paid medical coverage, group life insurance, pet insurance, flexible work schedules, wellness programs and mental health assistance. The benefits of employment demonstrate to new hires that they are valued additions to the team.

► Performance management: Sets clear expectations for performance and provides regular feedback. Ensure that performance evaluations are instructive versus punitive and reward top performers.

► Succession planning: Educating employees about how long-term plans for success include them inspires work toward the collective success of the team. This also strengthens continuity of leadership and provides details on how critical roles will be filled with in-house talent when vacancies occur. This type of planning results in well-coached employees ready to take on more responsibility with confidence and guards against talent gaps that can occur when team members leave or retire. 

► Workforce analytics: Analytics that include workforce demographics, performance, turnover and engagement efficiency help you create strategies to attract and keep your talent, allocate your resources and identify areas for improvement.

► Risk management: Addressing required adherence to labor laws, industry standards and health regulations lowers the probability of loss due to noncompliance.

You can’t completely avoid hiring heartburn, but with well-managed hiring and workplace practices, you certainly can reduce the annual budget hit for mis-hires and lower your antacid intake.

Mike Chastain is the president of Excalibur Advisors, a business consulting firm in Maumelle.