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6 Ways to Evaluate Your Selection System

By Scott Erker, Ph.D.

Scott Erker, Ph.D. As talent advocates have said for years: Talent is the linchpin for organizational success and sustainability. And the cost of making poor hiring decisions has never been more consequential: According to a Bersin & Associates research bulletin (O’Leonard, 2012), the cost of a new hire in the United States is, on average, $3,479. This varies by industry, with manufacturing having the most costly hires ($6,443) and health care the least costly ($2,127). But the cost to organizations of poor selection goes well beyond those costs incurred in hiring.

A 2009 Corporate Executive Board study found the total cost of poor selection (i.e., turnover costs + performance loss) was $28.5 million (assuming 2,500 new hires per year, with an average salary of $75,000). The math doesn’t lie: If your business relies on talent to compete, then talent decisions have critical bottom line consequences.

The challenge looming ahead for staffing directors and their business partners in the coming years is not just how to get high quality candidates to line up outside their door, but how to zero in on the ones that they want to step through.

Unfortunately, our research found that, although selecting employees is something organizations have been doing for a long time and is arguably the most formalized HR system, organizations still have many opportunities to improve in this area. Most have neglected two time-tested keys to success when selecting employees: knowing who they need and using the right tools to find them.

To tackle this business-threatening talent acquisition challenge, you should be asking yourself six key questions as you begin to plan a strategy to propel your business out in front of the competition:

  1. Is the strength and readiness of our workforce ready to drive the business to new heights?
  2. Do we know where our gaps are and what we’re looking for?
  3. What qualities are most critical for our new employees to have?
  4. Do we have accurate information about how our candidates stack up against job requirements?
  5. Are our assessments contributing effectively to the selection process?
  6. Is our selection system doing its job?

Perhaps you answered “No,” “I don’t know,” or even “How do I know?” to any of these questions. If so, read our Global Selection Forecast to ensure your organization reaches its objectives today and into the future.

Scott Erker, Ph.D., is the senior vice president of DDI's Selection Solutions.

Posted: 12 Sep, 2013,
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