Reduce Hiring Risk
Traditional Interviews Don’t Work
In Jason Dana’s New York Times article, The Utter Uselessness of Job Interviews, he discusses research he conducted at the Yale School of Management, which consistently shows that unstructured interviews are “harmful, undercutting the impact of other, more valuable information about interviewees.”
“In fact, some evidence suggests that interviews are far worse than wasteful: By drawing employers' attention to irrelevant information, they can produce inferior decisions,” writes Cass R. Sunstein, Director of the Harvard Law School's program on behavioral economics and public policy.
Wrong Hires Cost Money
The US Department of Labor estimates that the cost of a bad hire is 30% of the individual’s annual salary. However, Zappos’ CEOs, Tony Hsieh, wasn’t lowballing it when he claimed that his own bad hiring choices cost Zappos "well over $100 million." In fact, calculations show that hiring the wrong individual costs $240,000 - a huge loss when an employee doesn’t work out.
Other costs are less quantifiable. SHRM indicates that lost productivity and decreased morale are as significant, if not more significant, than the financial costs of bad hires. The organization also reports that most companies lack the patience, talent, and other resources to hire effectively.
Retention Risk Decreases Expected Payoff
According to Gallup, Millenials are more likely than any other generation to switch jobs, and it is estimated that “millennial turnover costs the U.S. economy $30.5 billion annually”. This risk of retention makes investing the time and energy into finding a good hire even more daunting.
Conclusion: Contract!
Benefits of a Contract-to-Hire:
Flexibility- Satisfaction Guaranteed
Speed- Quick onboarding
Eliminates Uncertainty- Let us take on the risk
Time is money- Keep your projects on track by filling open positions
