Recent independent research commissioned by Robert Half suggested that majority of Singapore’s financial bosses have hired an employee who did not meet expectations. Nearly all 150 CFOs in the country (98 percent) admitted they have made a miscalculated hiring decision, with almost one-quarter (24 percent) said it took them two weeks to find out that they have chosen the wrong person for the job.
According to the survey, the most common reasons why new hires did not meet expectations include a mismatch of skills (43 percent), the candidate being underqualified (37 percent) or overqualified (35 percent) and a misalignment in attitude (34 percent).
In the press release published on Oct 31, Managing Director of Robert Half Singapore Matthieu Imbert-Bouchard said, “Hiring the wrong person for the job can have significant negative repercussions for the business, with the cost of hiring the wrong applicant escalating beyond just financial repercussions. Aside from causing a setback to a company’s productivity levels, team morale and stress levels can be negatively impacted which in turn highlights the importance of having an efficient, streamlined recruitment process.”
Hiring the wrong person for a position can affect negatively to the organisation. The survey found that the top consequences of a bad hire according to Singaporean finance employers are increased workload for colleagues (43 percent), and increased stress on managers (43 percent) and colleagues (41 percent). Meanwhile, other cited negative consequences include increased workloads for managers (38 percent), lost productivity (28 percent) as well as higher recruitment costs (27 percent).
Not only in terms of productivity and efficiency, bad hire can also be highly costly for companies. More than four in 10 respondents (41 percent) do track the costs yet fail to compile all the data in a single overview, while one in three (34 percent) say some costs are not accurately measurable. Little over one in 10 (12 percent) do not track the costs closely and 11 percent admit they have not looked at doing it. Merely 2 percent say they do not find it challenging.
When asked what steps they took to address the poor hiring decision, more than one in three (35 percent) Singaporean leaders surveyed said they terminated the employee contract. Another 33 percent respectively developed a training program to develop the employee’s skills to the desired level, and partnered with a staffing agency to secure a replacement. Close to one-third (32 percent) of finance employers decided to deal with the matter internally by looking for an internal vacancy the candidate would be better suited for and 28 percent adopted a ‘wait and see’ approach to see if the employee’s performance would improve.
“Determining an applicant’s suitability for a role, including technical skills, cultural fit and attitude can be challenging for any interviewer. It’s essential for hiring managers to have clear hiring criteria in mind, come to the interview prepared and implement a rigorous process in order to identify the “best fit” candidate. To keep the hiring process on point and in line with changing market demand, Singapore’s hiring managers need to regularly review their hiring policies in order to balance the recruitment process with the right level of efficiency and rigour,” concluded Matthieu Imbert-Bouchard.