The true cost of a hiring mistake - what the VP of HR at Dupont told me…

I once had a retired Vice President of Human Resources from Dupont visit me in my office, and he told me this story. He said the cost of a hiring mistake is so high, that it is difficult to calculate. He said think of it in this way:

He said this. Our group spent considerable amounts of time defining our need. We then began the recruiting process. There were costs associated with these activities.

As we began to interview candidates, we took time away from our normal work activity. There were additional costs associated with this.

After considerable time, effort and expense, we choose one candidate and begin the on-boarding process.

Now, we knew that it would take a certain amount of time for the newly hired candidate to learn where we keep the office supplies, and our routine, so we simply watched them work for the first 3 months. We were not overly concerned about their productivity at this stage.

In the next 3 months we focused on quantifying their productivity. At this point, we at times recognized that we had made a hiring mistake. When this happened we then spent the next 3 months documenting all of our interactions with this employee to insure that we were on solid legal ground when we let the candidate go. By the time all was said and done, we often had lost hundreds of thousands of dollars.

So, what can be done?
First, minimize turn over by staying in touch with your employee’s hidden feelings. Get a good understanding of their underlying internal dialogue by spending time in informal settings, such as sporting events.

Second, use behavioral interviewing and careful background checks to reduce hiring mistakes. The best predictor of future behavior is past behavior.

Third, use a script when interviewing. By asking each candidate the same questions in the same way, you will obtain a more accurate reflection of the candidate’s true nature and interests.

Fourth, spend time with the final candidates in various settings, and at different times of the day. Meeting in a restaurant, or hotel lobby will at times give you a completely different view of this candidate’s personality.

Ultimately our business is only as good as it’s people.