When you are ready to hire a new employee, the steps you take can mean the difference between a quality hire and a subpar one. A poor hiring decision can have a significant impact on your bottom line. Here are 10 mistakes to avoid when recruiting new employees.
1. Avoid: Waiting too long.
While you can’t always plan for staffing needs, waiting until you desperately need to fill a position may lead to rash decisions. If you make a bad hire, filling the position a second time can be more costly and time consuming. Project staffing needs by considering seasonal fluctuations in business, expected sales, and current performance.
2. Avoid: Overlooking the job description.
Prior to starting the recruiting process, develop a well-crafted job description for your open position. Job descriptions identify the essential functions and qualifications needed for the role. These are key elements for a job advertisement and for assessing whether applicants meet the minimum requirements for the job.
3. Avoid: Inflating job requirements.
Identify clear job-related criteria by which you will assess applicants and apply the criteria consistently. If your educational requirements exceed those needed for the position, it may be difficult to fill the role and you may be overlooking otherwise qualified candidates. For example, not every job requires a bachelor's degree, but many employers include it as a qualification regardless of the position. Inflating educational requirements may also undermine the value of on-the-job experience and important skills that are developed outside of the classroom. Further, the practice may lead to discrimination claims if it excludes groups who tend to graduate college at lower rates.
4. Avoid: Failing to offer a competitive mix of pay and benefits.
Review salary surveys to compare your company’s pay data with other businesses similar in size, industry and location. If your company is unable to offer a high base salary, consider a mix of direct and indirect compensation. Direct compensation includes wages, salaries, commissions, and bonuses. Indirect compensation may include health insurance, paid time off, retirement plans, and commuter assistance. The right mix can help you attract (and retain) top talent while managing labor costs. Providing flexible work arrangements can also be an effective recruiting tool.
5. Avoid: Relying on one recruiting method.
Relying on one or two recruiting methods could limit the quality of your applicant pool and increase the time it takes to fill the open role. Consider a wide variety of recruiting methods that fit your budget, such as online job boards, posting jobs on your website and social media pages, or asking for employee referrals. If you’re looking to fill a highly specialized role, consider using a professional recruiting firm or reach out to industry organizations.
6. Avoid: Using protected information to make decisions.
Federal, state, and local laws protect individuals from discrimination on the basis of age, race, national origin, sex, religion, disability, and other protected characteristics. Some states and local jurisdictions have also enacted laws protecting unemployed individuals from discrimination. Even if you operate in a state without such protections, a best practice to consider all applicants, regardless of employment status. Check applicable nondiscrimination laws to ensure compliance.
Keep in mind that several state and local jurisdictions have enacted laws with restrictions on pay history inquiries.
- While these laws vary, they typically prohibit employers from:
- Seeking salary history information about an applicant, with limited exceptions.
- Asking about current or former salary on application forms and in interviews.
- Relying on an applicant's salary history to determine job or salary offers.
- Asking for or providing salary history information during reference checks, with limited exceptions.
The idea behind these laws is that an applicants’ pay history may reflect discriminatory pay practices of a previous employer and result in lower wages in the new job if the information is used to set pay. Check your state and local laws for details.
7. Avoid: Excluding supervisors from the process.
Direct supervisors generally know the requirements of the open role best and will likely train and work closely with the new hire. Involve supervisors in the hiring process and consider their input when crafting job descriptions and making hiring decisions.
8. Avoid: Using language in job ads that may discourage qualified workers.
Ensure that job advertisements and job descriptions use language that encourages all qualified workers to apply and avoid keywords or phrases that could discourage them from applying. For example, if the position has specific physical demands, focus on the task that needs to be done, rather than how it's done (such as, the position requires "moving" 50 pounds, instead of "lifting" 50 pounds). Employees with disabilities may be able to perform the essential functions of the job with an accommodation, such as using a cart, dolly, or mobility aid.
Additionally, avoid language that could be construed to indicate a preference based on age or another protected characteristic. For instance, "this job would be ideal for someone young/recent college graduate." If the pay is lower, you can say that the job is entry-level or simply list the wage or salary. Never assume a worker wouldn't be interested in a job based on their age or the salary offered.
9. Avoid: Failing to disclose pay information if required by state or local law.
Several states and local jurisdictions require private sector employers to disclose the pay range for a position to an applicant or employee. These laws generally have one or more of the following requirements:
- Employers must provide the salary range upon request of an external/internal applicant.
- Employers must provide the salary range to applicants automatically at a certain point in the hiring process (e.g., at the time a job offer is made).
- Employers must include salary range information in any job posting.
Check your state and local laws for details.
10. Avoid: Neglecting to send rejection letters.
Once you have disqualified a candidate, inform them of your decision. While difficult to do, sending a rejection letter helps maintain goodwill with applicants. This is important if your needs change and you want to tap into former applicants for future openings.
Conclusion
Regardless of the size of your business and your recruiting budget, have a plan in place before starting the hiring process. Investing the time upfront can help you to draw from a pool of qualified applicants and make well-informed hiring decisions.