If your answer is yes, you’re not alone. According to the Winter 2023 BFS State of the Boutique Industry Report, 75% of studio owners consistently say hiring is one of their top challenges.
The traditional hiring process can be time-consuming, particularly when it involves sifting through large numbers of resumes and conducting multiple rounds of interviews. It’s exhausting, expensive, and frustrating for both your team and your candidates.
The Real Costs of Mis-hires
Forty-five percent of studio owners say finding the “right” people is their biggest staffing challenge. Hiring someone who doesn’t perform well in the role or stay for the long term is not just frustrating but also a costly mistake. The cost of a mis-hire can be substantial and varies depending on several factors, including the position level, overall compensation, and specific circumstances surrounding the hiring mistake.
The Society for Human Resource Management (SHRM) suggests that the cost of a mis-hire can range from five to ten times the employee’s salary, depending on the role and industry. A study by CareerBuilder found that 74% of companies have made a bad hire, and 41% of those companies estimated that a bad hire cost them more than $25,000, with 25% estimating the cost to be over $50,000.
In my Talent Optimization consulting practice, we utilize a Turnover Cost Calculator to determine our client’s true cost of employee turnover, which factors in numerous expenses, including:
- Departing employee annual compensation (salary + benefits).
- Days needed to cover the departing employee’s responsibilities.
- Costs to cover the position while vacant: covering employee’s annual salary or overtime pay for existing employees.
- Costs to fill the vacant position: advertising and posting online.
- HR and the hiring manager time, screening, interviewing, background checks, and more.
- Costs of onboarding and orientation: annual salary of the person responsible to train the new employee, including trainer and hiring manager time.
- Costs of productivity ramp-up: number of days it takes for a new hire to reach full productivity.
Given these factors, it’s clear that the cost of a mis-hire is significant and highlights the importance of effective recruitment and selection processes.
The Benefits of Behavioral Assessments in the Hiring Process
To eliminate guesswork and wasted time, consider implementing frictionless behavioral assessment to quickly and efficiently narrow your field of applicants, make stronger, data-backed hiring decisions. Our assessments are backed by over 60 years of behavioral science that only take the candidate 6-minutes to complete, creating a smooth candidate experience.
Each candidate has different behaviors, which are illuminated through the assessment process, giving you deep insights into how they work. We incorporate AI to see how those applicants fit your open roles, how their behavioral characteristics align or misalign to what is needed to be successful in the role, and use actionable data to simplify your hiring process. This not only speeds up the hiring process but also frees up valuable time for HR professionals and hiring managers, allowing them to focus on more strategic aspects of talent acquisition and development.
Conclusion
Always, but particularly now, the importance of recruiting, developing, and retaining talent cannot be over-emphasized. By leveraging assessment tools, organizations can make more informed and objective hiring decisions, reducing the risk and cost associated with mis-hires. Ultimately, this leads to a more productive, cohesive, and satisfied workforce, contributing to the long-term success of the organization.
For more content like this, access our People Operations Playbook by Hire Ground Talent
