How to hire the right person is a burning question for everyone in business.
It’s an especially acute issue for small and medium enterprises like yours, who need to make every decision count.
Hasib Howlader, owner of a small, dynamic accountancy firm in the City of London, knows this very well.
He also knows that recruitment is a tricky thing to get right, even with years of experience under your belt.
That’s why he masterminded Top Five Percent, a cutting-edge recruitment solution engineered to bring big-corporation quality within the reach of SMEs.
Here, Hasib offers some tips on how to hire the right person for your business, whatever sector you’re operating in.
Never base hiring decisions on gut feeling
If you go with your gut, you won’t hire the best. It really is as simple as that.
Even if you don’t experience outright recruitment failures, instinct-based hiring will limit the potential of your business over time.
Research by Nobel prize-winning behavioural economist Daniel Kahneman reveals that traditional hiring methods are fundamentally flawed.
Instead, you need to rely on systematic testing of the kind used by investment banks and the financial services industry to find the best people for your business.
Hiring is expensive, so you’d better get it right
A study by Oxford Economics calculated the average cost of hiring a new employee to be a staggering £30,000.
The immediate costs of recruitment are just the tip of the iceberg – you stand to lose far more in lost productivity while your new recruit gets up to speed in their role.
But the study also shows that if you’re a small or medium business, when you do hire the right person, your costs are less than if you were a major corporation.
You can cut the cost of hiring by up to 90% (if you think like a computer)
If you haven’t quite worked out how to hire the right person, know this: TFP has helped business people like you make significant savings on the cost of recruitment.
As Daniel Kahneman says, it’s all about making your recruitment process systematic, reproducible and highly analytical.
In short, you need to collect a lot of data about your candidates, and think like a computer when you process it.
But while this makes sense, it’s a lot of effort to put into practice. That’s where TFP comes in.
How to hire the right person: use Top Five Percent
If you haven’t met our brainchild, allow us to introduce you.
Top Five Percent is a next-generation recruitment tool which brings the advantages enjoyed by the big players to the fast-paced world of the SME.
Not only can you afford it, we’d be so bold as to suggest you can’t afford to be without it.
When you put TFP to work for you, you’ll be able to:
- Make better hiring choices more of the time with customisable, cheat-proof testing
- Analyse which sources drive the best quality candidates to your desktop
- Communicate with applicants quickly and easily at every step of the recruitment process
- Rank candidates by attribute and skill set with a single mouse click or screen tap
- Do all of the above on the move, from your smartphone or tablet
When you’ve got TFP, you can consider the question of how to hire the right person well and truly settled.
https://www.businessinsider.com/daniel-kahneman-on-making-decisions-2014-8?IR=T
