A bad hire can cost your business in ways that go far beyond lost productivity. Often, it can take up to 30% of that person’s annual salary to replace them.
To avoid making the most common hiring mistakes, assessing each candidate before deciding thoroughly is essential. This includes running a background check and other pre-employment checks, like credit reports and driving records.
Failing to Conduct a Background Check
One of the biggest mistakes a business can make is hiring someone with a criminal record. This is not only illegal, but it can also create a security risk for the company.
A background check is a way to find out more about an applicant’s past than what they may disclose on a resume or job application. A standard background check includes a criminal inspection that verifies the individual’s identity and any felonies or misdemeanors that appear on their record. It can also include a search of county civil records, revealing lawsuits that the candidate has filed in the past. This pre-employment screening can also include an MVR or driving background check that finds out more about a candidate’s driving history, including any accidents or citations they have received.
A pre-employment screen should also include a credit check, which helps employers assess an applicant’s level of financial responsibility. It can also verify that the candidate has the appropriate government-issued licenses for their role, such as a medical or teaching credential. Finally, it can include a search of sex offender registries to avoid endangering staff or tarnishing the company’s reputation by hiring a convicted sex offender. When conducting a background check, it’s essential to notify the applicant that the checks will be done and get their authorization. This will help ensure you comply with all fair credit reporting laws.
Failing to Conduct a Skills Test
Hiring new employees is a necessary process that requires careful consideration. Hiring the wrong employee can have severe consequences for your business, including a loss of productivity and money. To avoid these problems, following best practices throughout the hiring process is essential.
One of the most common mistakes small businesses make is failing to conduct a skills test or a background check. These checks can help you find the right candidate for your job and save you a lot of time in the long run.
Setting a floor and only hiring people below that level is essential when hiring. Skill tests can help you weed out candidates who do not have the skills needed to perform the job, but they should be combined with other effective hiring methods to ensure accurate results.
It is also essential to do a credit check on all potential hires, especially for jobs that require driving. This is because a bad credit report could affect their job performance. In addition, a criminal record may impact their safety and other employees’. A thorough background check, like a pre-employment checks guide in the UK, can help you spot a potential problem before it becomes a big problem for your business. This can save you time and money in the long run.
Failing to Do a Reference Check
The best way to ensure you’re hiring the right person for a role is to ask multiple references to provide feedback and insights into their work ethic, personality, and more. However, many hiring managers and employers skip this step because they are too eager to fill a job vacancy or frustrated by a lengthy recruitment process. This can lead to a rushed decision and a bad hire, ultimately damaging employee morale and the company’s reputation.
You must do a reference check to ensure you are getting accurate information, as many states and localities have laws that protect an individual’s rights regarding providing references. For example, you cannot legally request a candidate’s age, marital status, sexuality, or ethnicity. In addition, you should only contact a candidate’s current employer directly for a reference with permission from the applicant. Doing so could be illegal and tip off the candidate’s current manager that they are looking for a new job, which can cause them problems in their present role.
Another critical aspect of a reference check is examining the candidate’s credit report, which can reveal financial responsibilities and habits that may impact their performance on the job. For example, a poor credit history might indicate an inability to meet timely payments or an overspending tendency. It’s also a good idea to check a candidate’s driving record, especially if the position requires regular vehicle use or offers a company car.
Failing to Conduct an Interview
The hiring process is time-consuming, but it’s also critical. Hiring the wrong person can hurt your business in many ways. This includes the initial cost of training and then ongoing costs associated with lost productivity. It can also damage your reputation. Customers may avoid your business because they know you have bad employees, which can lead to lower customer satisfaction.
Some managers are so eager to hire someone that they skip the necessary steps. They may need to draft a clear job description, and they may not ask the right interview questions. They may also try to cut corners by hiring on an emergency basis. This can backfire in the long run because they will need more time to conduct thorough background and reference checks.
During the interview, it’s essential to listen to the candidate’s answers and not interrupt them, even if you disagree with what they are saying. It’s also a good idea to avoid asking closed-ended questions that require one-word or short answers. This shows that you must listen to the candidate, which is a significant hiring mistake. You can ask follow-up questions if they still need a complete answer. It’s also essential to specify that additional responsibilities can be added to the position as needed. This will help you ensure employees are correctly qualified, which could result in costly penalties for your business.