One of the most important decisions that business owners and managers make is who to hire. According to Fast Money Magazine, “The most important corporate resource over the next twenty-years will be talent. It is also the resource in shortest supply.”
Research has shown that traditional interviewing has about a 20% success rate in separating the best candidates from average candidates. Hiring managers need to think seriously about developing the skills that will help them to make the right hiring choices. Making the wrong decision can be very costly. If the wrong hiring decision is made, estimates show that it can cost the organization the equivalent of up to one year’s salary for that position. For some positions, that is a substantial amount of money. When you take into account the costs of advertising, interviewing, on-boarding, and training, plus the cost of lost time spent with a candidate that does not work out, you can easily see how expensive it is to make the wrong choice.