It’s 3x more expensive to hire the wrong candidate: Here’s how to get it right

Hiring new talent is by no means an easy task.

Sifting through CVs, checking over application forms, and sitting through hours of interviews to differentiate who’s the best person for the job is time consuming and costly. And of course, sometimes, HR leaders don’t get it right.

But when the wrong person is hired for the job, it can be nearly three times as expensive as when the right choice is made, according to new research from HR technology and psychometric science company SHL.

And the survey – which included more than 1,600 HR professionals from across the globe – also found that two-thirds of organizations expect that the recruitment and hiring of talented individuals for key positions will become progressively more challenging in the coming year.

“Among the most interesting findings from our research is the widespread anticipation of changes in hiring processes due to automation,” says Sara Gutierrez, chief science officer at SHL.

“Notably, 53% of HR professionals expect the rise of automation to create new roles within the organizations. Concurrently, half the respondents anticipate adjusting their hiring and selection programs.

“This anticipation underscores the focus on hiring individuals capable of adapting to evolving roles, rather than the traditional reliance on prior role-specific experience.”

Although there will never be a hard and fast solution to finding the ideal candidate for new roles, adopting a data-driven and science-backed is the best way to minimize the risks.

“To proactively address potential talent shortages resulting from increased automation and AI adoption, HR leaders should adopt a strategic approach to recruitment planning. This involves exploring alternative talent sources, tapping into diverse pools of talent, and prioritizing the upskilling of existing employees,” Gutierrez adds.

Staying well-informed about industry trends, particularly those related to technology and automation, will be crucial for HR leaders to navigate and capitalize on the evolving landscape of hiring talent.”

Bolstering the hiring process

Focusing on hiring internally rather than sourcing external talent is another way employers are attempting to pair the strongest candidates with an open role.

In fact, the report shares that 57% of organizations are focusing more on hiring and developing talent internally, with 80% relying on assessment to test candidates through the hiring process.

What’s more, the report states five ways in which employers can safeguard the hiring process, ensuring it is made future-proof. These include:

• Leveraging assessments
• Hiring for skills
• Staying agile and adaptive
• Prioritize candidate experience
• Making the most of existing talent

“Our research underscores the critical importance of aligning HR practices with broader business objectives, emphasizing that successful hiring strategies necessitate close collaboration between HR and other organizational departments,” Gutierrez says.

She adds: “This alignment ensures that people’s decisions directly contribute to the organization’s overarching goals, fostering efficiency and effectiveness in the dynamic landscape of talent acquisition.”