HOW TO ACHIEVE SUCCESS WITH EVIDENCE BASED RECRUITMENT - PART 1
IDENTIFYING AND HIRING TOP TALENT IS NOT EASY
The stakes of wrong hires are high and includes:
- High employee turnover
- Low job performance
- Low productivity
- Low revenue growth
A recent study from Harvard Business Review concluded that the cost for hiring the wrong employee is over $8000 per day (Menon, T. & Thompson, L. 2016). So how can you reduce volatility in identifying your next best hire, your next high performing team or your next leader? Not an easy question to answer, but HR analytics shows promising results as a mean to create a recruitment strategy closely linked to organizational performance and goals.
DATA-DRIVEN HR CAN PREDICT PERFORMANCE
Successful organizations often use data across a variety of areas to empower and optimize their business. Many HR departments are beginning to adopt this approach and use data to predict specific outcomes such as performance, general job satisfaction or turnover already at the recruitment stage.
Evidence shows that personality tests can be powerful predictors of performance, especially when they are carefully matched with KPI’s closely linked to the strategy and success of the company. It opens for the possibility to predict high potential employees early in the recruitment process and quickly select candidates with a good fit to the demands of the job and the needs of the company.
To be continued…. Next time we will look into how to get from KPIs to top drivers of performance, and how HR analytics is supporting hiring the right people