5 Ways To Avoid Costly Hiring Mistakes

by | Aug 4, 2015 | Hiring & Firing, Our Blog | 0 comments

Hiring2015 appears to be a big year for hiring. However, some employers have major glitches in their hiring processes.

Not paying attention to the essentials of hiring and recruiting can cost employers. The direct costs include employment ads, recruiter fees, training costs and severance costs. However, many employers overlook the indirect costs, such as:
Staff time – Payroll costs of managers and other employees involved in the recruiting process.

Productivity costs – Even just one bad apple can spoil the bunch and drag down productivity of the entire team.

Lost opportunity costs – Even just one bad hire can cost a company a great amount of money if they are the cause of a lost contract, or a project that did not materialize.

Litigation costs – If a disgruntled employee decides to concoct an illegal reason why he or she was terminated, it could cost immense legal fees.

Morale and turnover costs – People like to work with positive, productive people. As stated before, one bad apple can spoil the bunch and result in turnover of other employees


To avoid the costly mistakes listed above, it is essential that employers begin by following these 5 hiring guidelines:
Complete forms. Insist that applicants fill out application forms. Be sure to read the completed application for red flags, such as gaps in employment and missing information.

Verify credentials. Although challenging, check at least 2 references and confirm educational background and certifications. A recent HireRight survey found that 50% of employers weren’t checking job candidates’ education backgrounds, and 32% weren’t checking previous employment. This is particularly concerning when you consider that 86% admitted to having caught a candidate in a lie at one time or another.

Complete appropriate background checks. Consider criminal background checks appropriate to the position. Be sure to comply with EEOC guidelines and the Fair Credit Reporting Act!

Create and follow an interview checklist. This is a helpful way to make sure you are staying consistent with interviews, asking appropriate questions and completing necessary tasks.

Train employees. Train everyone conducting interviews about your policies and practices. Insist that they document all steps taken even if they were unsuccessful in obtaining information.

For assistance with developing a hiring process customized for your organization, contact Alternative HR at 717-855-5589.