New hire risk is becoming an important topic of discussion as the economy continues to improve. According to the Bureau of Labor Statistics, the national unemployment rate has remained around 6 percent since December 2013, which means businesses have been hiring at a steady rate. This is great news for both businesses and job seekers. However, with increased hiring comes the risk of hiring the wrong applicants.
Fortunately, there are some steps you can take to minimize new hire risk. First, take a close look at the resumes you receive. Focus on objective statements, training, education and any other information that reflects an applicant's career goal. This information will help you discern which applicants are interested in the position as a long-term job and which employees are only using the job opportunity as a stepping stone to another position. If the job you are hiring for has no advancement potential, it is especially important to stick to an applicant who seems interested in that job and not just the next opportunity.
If you are hiring for retention, asking the right questions during an interview is one of the best ways to minimize new hire risk. Have the applicant respond to at least three hypothetical situations that are common in your workplace. This allows you to gauge the applicant's ability to handle the job. Along the same lines, use the interview to check how well the applicant fits into your company's culture. If the applicant will be representing the company on a regular basis, you need to know that his or her work ethic and values align with the company's. If not, the employee will not last long.
In addition to screening applicants, hiring managers can make all the difference when it comes to minimizing new hire risk. Having good hiring managers is essential for hiring for retention to be effective. Hiring managers should always be knowledgeable about all of the jobs in your workplace. When it comes time to fill a vacant position, the hiring manager will have a better understanding of the requirements of the job and the knowledge to decide which type of applicant is a good fit. The bottom line is that the more the hiring manager knows about the position, the better the chances are of hiring the right applicant.
Minimizing new hire risk is the foundation for a successful workplace. High turnover rates cause loss of revenue and negatively impact productivity. To avoid wasting time and resources training a new hire that does not last long, employ each of these strategies to hire the right employees with the right qualities for the job.
Hiring and retaining employees requires a careful balance of scrutinizing applicants and having the knowledge to decide which applicants are the best fit for the position. To minimize new hire risk, use these tips to discern which applicants are genuinely interested in the position and have the skills necessary to do the job.
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