Where is your organization focusing its strategic initiatives and investments this year? Well, I would argue that one of the most important areas for any organization to focus on is their hiring system.
Regardless of what industry you’re in, the individuals that you hire into your organization will shape the success of your company. They will shape how productive your organization is, how satisfied your customers are, how profitable you are, the list goes on. And I’m not just talking about the selection system of the leadership positions within your organization, which is critical, but across all levels. Developing and implementing effective selection processes across your organization can pay tremendous dividends, well worth the investment.
The following are a few benefits that can be achieved from a well-designed and implemented selection system:
Improved Employee Performance – This is a big payoff area and the return on investment can be substantial. Well-designed selection systems lead to individuals who perform better on the job. Tip: Ensure that you’re incorporating assessments into your selection process to get the best prediction of performance.
Reduced Turnover – A well-designed selection system will identify candidates that are less likely to turnover, either voluntarily or involuntarily. We all know that the costs of turnover can be quite high, so this is another area where you can see a nice return on your investment.
Reduced Time to Hire – When designing a hiring system, you can often reduce your time to hire by leveraging assessments and technology to assist with screening. By strategically building the steps of your hiring process to maximize the use of technology, and saving the more resource-intensive steps to later in the process after candidates have been pre-screened, you can reduce your time to hire.
Increased Efficiencies – By leveraging technology and assessments in your selection system, you can reduce the burden on your internal HR resources and hiring managers, so that by the time candidates make it to them for an interview, they have already been through prior screening. Thus, they would have to conduct fewer interviews to find the best hires.
Increased Legal Defensibility – A well-designed selection system is also a system that would hold up against a legal challenge. There are a number of steps that go into ensuring that your selection system is legally defensible. But, when it comes down to it, if you follow all of the steps to design a solid selection system and implement it consistently, it will be legally defensible.
In sum, as you think through where to focus your efforts in the upcoming months and remainder of the year, consider the value of reviewing and investing in your selection processes.