Common Hiring Mistakes Made by Business Owners and How to Avoid Them

Hiring the right people is essential for the success of any business. Despite thorough interview processes, application reviews, and candidate screenings, numerous hiring mistakes can still occur. These mistakes can cost companies more than just money; they can lead to significant legal issues and damage to the company's reputation. In this article, we will discuss some of the most common hiring mistakes and provide actionable steps to avoid them.

1. False Credentials

One of the most prevalent and costly hiring mistakes is hiring individuals with false credentials. For instance, in 2012, Scott Thompson, then CEO of Yahoo, was fired due to false academic credentials on his resume. Studies indicate that up to 40% of resumes contain false credentials. This is a growing concern for recruiters as these falsified credentials can go undetected, leading to the hiring of unqualified individuals.

The real risk lies in the potential for candidates to lie about their identity or professional experience if they have already lied on their resume. This can lead to serious issues when they take on important roles within the company. To mitigate this risk, organizations must conduct comprehensive background verification checks. This includes verifying all aspects of a candidate's academic, social, and professional backgrounds. Services like Fact Suite can run complete background checks, ensuring that the information provided by candidates is accurate and reliable.

2. Negligent Hiring

Employers are legally responsible for the hiring decisions made within their organization. If an upset or damaged employee makes a claim against their employer, stating that the employer either knew or should have known about the employee’s background, the employer can face a negligent hiring claim. This can lead to substantial legal liabilities and reputational damage.

To avoid negligent hiring risks, employers must run thorough background checks on all candidates before hiring them. This includes all types of data checks to provide a complete report on the candidate's background. Fact Suite offers comprehensive background verification services, including social, professional, and academic background checks.

3. Common Hiring Mistakes and Lessons Learned

Based on personal experience, there are several common hiring mistakes that business owners should be aware of:

Hiring for attitude, training for skills Focusing on making your best people even better Overestimating the ability to interview effectively Ensuring peers of the candidate take the lead in the interview process Conducting behavior-based interviewing When hiring, always be interviewing even if you don't need to Implementing incentive pay as a major part of compensation Ensuring timely payment of incentives Making your firm an attractive place for the best people to work Trust but verify Conducting background checks including minor details Eliminating a final candidate caught in a lie Firing quickly when necessary

The Truth About Hiring

Unfortunately, many business owners overestimate their ability to interview effectively. It’s crucial to ensure that peers of the candidate take the lead in the interview process. This can provide a more objective and comprehensive assessment. Additionally, conducting behavior-based interviewing can help in evaluating candidates based on their past actions rather than hypothetical scenarios.

Another critical lesson is to be constantly interviewing, even when you don’t need to hire someone. This helps in building a pipeline of qualified candidates and ensures that you can act quickly when the need arises. Finally, ensure that you verify all aspects of a candidate's background, including minor details. When one final candidate was eliminated due to lying, the interviewer’s response was, "I guess the interview is over." However, too bad, as that candidate was the first choice, and he didn’t need to lie.

Conclusion

Hiring mistakes can be costly and damaging to a business. By being aware of common mistakes and taking steps to avoid them, business owners can create a more trustworthy and successful workforce. conducting thorough background checks, ensuring negligent hiring risks are mitigated, and focusing on the right qualities in candidates are all key steps in this process. The phrase "hire for attitude, train for skills" holds true, and by implementing these strategies, business owners can build a team that both thrives and grows with the company.