Personality vs Profit: You can have both if you recruit properly

Personality vs Profit: You can have both if you recruit properly

Companies have never recruited as much as they do now. They spend more time and invest more money on it. But why do so many companies misunderstand this? What is the true cost of your mistakes? And the greater emphasis that personality places on competence?

The traditional nomination process follows a pattern that most of us know and experience. It goes like this: HR determines the task of the task, appoints managers, and provides a plan of the qualities needed to accomplish it. Vacancies are published and candidates apply. A meeting is scheduled. The position will be offered to the selected candidate.

This process has changed over the years, but the essential structure has remained the same. The problem with this model is that we don’t know how successful it is. Most companies can tell you how much they spend to find the ideal candidate. But few of them can explain the real cost per rental.

What we do know is that the traditional recruiting process has stopped. I tend to put my head in my hands when I read the countless HR reports that expose the appearance of bad employees. The Career Builder 2020 report offers few guarantees. He said 74% of employers hired the wrong person last year. This cost an average of £10,843. This is crazy.

Gain

Productivity should be an important consideration when looking for a new candidate. Ideally, the new hire should be more productive, whether through skills, efficiency, or both, to maximize profit opportunities. That makes a bad rent twice as expensive. Companies are not only paying for a wasted hiring process, inefficient training, and low productivity, but also for the cost of improving the chances of improving quality and production volume in the medium term. Profits that could have increased before being hurt.

McKinsey & Company research shows that 5% of top talent are 8 times more productive than average talent. Obviously, every employer strives to get as close to the top 5% as possible. If you’re an employer or a recruiter, you can dismiss it as impossible – “It’s good for the Google and Apple of this world, but how do I find the best 5%?” It doesn’t have to be an impossible effort. There are solutions I’ll talk about shortly, but first, let’s look at how bad rent can hurt profitability.

The $200,000/$50,000 formula demonstrated by HR Daily is a fantastic illustration of the problem. He describes how an employee who generates $200,000 in income would make his employer an $80,000 profit margin on rent. But an employee in the top 25% of the talent pool would give the company a $130,000 profit margin because it would generate more revenue. Therefore, a bad rent results in a loss of profit of $50,000.

Personality

“The first thing we look at when we hire a new team is a personality. Personality always trumps intelligence in books, in my opinion. – Sir Richard Branson

This is a statement that divides recruiters, business owners, and HR people. While the claim that personality takes precedence over “book intelligence” is controversial, there is no denying that character is a necessary and often overlooked requirement for any position.

Finding candidates who align with the company’s core values ​​and culture is a profitable exercise, increasing the likelihood of retaining good candidates. It also offers an opportunity to diversify your talent pool, engaging people who think differently from other employees to challenge existing regulations and processes.

It is difficult to choose between two or more candidates who offer similar benefits. the choice can be simplified with detailed personality data. Personality is actually an indication of future job performance that exceeds the quality of information that can be determined from an analysis of someone’s resume or qualifications.

Complete personality assessments increase your chances of hiring the best people. And the best people ensure healthy profitability.

Personality traits

At AssessFirst, our AI recruiting platform collects hundreds of data points about a candidate without the candidate having to fill out extensive questionnaires. This offers employers two main benefits in the hiring process; provides an analysis of a candidate’s personality type. It helps predict each candidate’s behavior and reveals the activities, projects, and even teams where they will have the greatest impact.

Collecting objective personality data provides information that can help eliminate unconscious biases. For example, all employers are subject to confirmation of affinity or bias during the hiring process. This bias contributes, perhaps more than any other factor, to poor rents.

Those who continue to hire without the benefits of artificial intelligence tend to be 74% of employers who fail. Data-driven personality recruitment goes far beyond a simple personality test. It is an in-depth analytical tool derived from behavioral science: assessment of cognitive and non-cognitive models. That way, employers can utilize 5% of the best talent specific to their business and culture.

The “advertise, deploy and maintain” website model is as old a process as in the corporate world. AI recruiting is generally associated with high-tech companies, but I think a much broader cross-section of businesses, many of which are challenged by the uncertainty of the post-pandemic market, cannot afford to go wrong when recruiting. . And it’s the personality traits that make them good.

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