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Improving the Hiring Practices for Higher ROI
Companies that can improve the hiring quality are three times more likely to better their first-year performance than the companies who don't.
FREMONT, CA: A company is as good as its employees. It’s essential for a business that their employees work in alignment with the goals and values of the organization. Thus it’s crucial that the hiring practices are suitable to hire such recruits. But what if they are missing the mark when it comes to recruiting such talents who will uplift the company’s endeavors? And what if they are hiring people who are working against the organization’s values and goals? Unfortunately, most of the organizations have to deal with unsuitable recruits.
Lack of an Effective System
It's not that the hiring teams, in general, are not trying. It's just that they lack a proper system that will streamline the quality assessment of the applicants based on multiple factors relevant to the openings. Over 60 percent of the companies consider hiring quality as the top challenge that they are facing, yet only 26 percent of the firms have a formal methodology of determining the quality of hire. One-third of them say that they would like to track the hiring quality but are not sure where to begin.
Check out: Top Human resource companies
It is a great challenge as the quality assessment programs must be tailor-built to suit an organization's structure and values, but the effort pays off in the long run. Companies that can improve the hiring quality are three times more likely to better their first-year performance than the companies who don't.
However, some more problems stand on the way of quality recruitment. One such concern is the disputable relationship between talent acquisition and hiring managers. Clear communication and agreement over the course of action is an essential first step toward righteous talent recruitment.
According to a study, 54 percent of companies report a better tracking quality of hire when there’s an understanding between hiring managers and talent acquisition.
Getting an Edge
An average company's market value depends on the share of intellectual properties, like brands, technologies, or patents owned by it. Thus it is imperative to focus on the quality of hire that is going to influence the intellectual capital. The difference between an average and a good hire for such a role can have a dramatic impact on the business.