Tulsa Staffing | Why 95% of companies make bad hires

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You are listening to trinity employments, eight player Matchmaker podcast starring your Tulsa Staffing host and the cofounder of Trinity Employment Specialists, Cory Minter.

Hi, welcome to the a player matchmakers. We are, I’m Cory minter and this is with I am with, I am with Ethan May and we were with Trinity Employment Specialists and we’re always trying to find different ways to add value to job seekers and employers. And the title of this podcast is kind of interesting. Ethan, not one 95% of companies make bad hires. We’re going to talk about that. Um, before that though, if you’re struggling to find the right type of people and if you’re trying to figure out why in the world does it seem like I’m always making the rounds the wrong decision on my hiring, you’re an office manager or a manager of some sorts. I think this content might be good for you. And if you find it helpful, we would love if you could share this information with other people that are likeminded like yourself.

Um, and you can find all of our content on our website. We have a little tab there that says podcasts, you can click that and we’ve got like 40 episodes now. We would love to have you refer that over to some of your colleagues. So today, um, we’re, we’re going to be going over, um, why 95% of companies make bad hires. I were talking about this beforehand have made many bad hires and it was a struggle for me. It was probably a struggle for the employee as well and it probably wasn’t very fun for anyone. Um, and so we want to try as employers to reduce the margin of error as much as possible so you can take pain away from you and paint away from your employee because we’re really just trying to find the right match for both parties. So let’s get this kicked off.

Um, you’ve got some stats for us, Ethan? I do. Yeah. I’ve got some stats from a study done by the Harvard Business Review, right? I mean, it’s like, Oh man, I know, right? Sounds heavy, serious, serious study here. It’s no secret. You know that an unrefined hiring process can cost you thousands and maybe millions of dollars. Um, but, uh, this Harvard Business Review says that as much as 80% of employee turnover stems from bad hiring decisions, um, specifically bad hiring decisions. Um, and according to a Brandon Hall research brief commissioned by Glassdoor, yeah, a staggering 95% of employers surveyed admitted to making hiring mistakes by recruiting the wrong people each year. So these, these employers are saying not just one time as this happened, but almost every year a 95% of employers are saying they’ve met, made a bad hiring decision. Well, the good news is, is that if you’ve made bad hiring missteps in the past or the past few months, or maybe just recently, um, you’re not alone.

There’s a lot of people who have, who have done this and really, really it’s just a learning experiment the whole way. I bet you if you went and found some of the very best managers in the United States of some of the top companies, I bet you they have some really, um, intriguing stories that they just made the wrong decision. They would have bet $1,000 they didn’t at the time. And they probably have learned from that. And so each different time, you know, we’re going to talk about how much money it costs companies, we’re going to talk about how, um, how to avoid it, why to avoid it and all of these things. But really, really, um, it’s, it’s a good learning opportunity if you’ll really sit back and ask yourself now, why did that take place? Definitely. Yeah. Eleanor Roosevelt has an awesome crowd, that quote that I love and it says, learn from the mistakes of others who can’t live long enough to make them all yourself.

And so exactly what you were saying. Some of these giants in entrepreneurship and business development across the world have made terrible mistakes. Well, my mentor a long time ago now, I started, uh, I started a lawn mowing company when I was in the fifth grade, started to company for everything. It’s not three or four at a lawn mowing company. You complained medical supplies than you do that? Yeah, I forgot about that. He just done some random things. I don’t feel like you’ve always been like, oh yeah, that’s started to come out that, well, this one, this one lesson from the fifth grade all the way up until when I was a sophomore in high school. And, um, one day I did something really, really stupid, just made a bad, bad decision. Okay. And it was a rarity that now Leon was my mentor. It was my best friend’s dad.

Okay. And so he, he came on, he very rarely came on the job site, but for some reason he, the son come to them. And so, you know, I’m probably in the fifth or sixth grade, you know, and I can’t even remember what I did, but it was something that he had told me not to do before. And I, I’d, I’d done it and it was really stupid and it was going to be costly and he found out about it. And so he goes and gets me, he gets a can of spray paint out of our, um, out of our Tulsa Staffing little cart, cause we didn’t even have a car. We were wheeling a cart Yardi chart at this point and he goes and gets his can of spray paint. And I’ve no idea why we had spray paint in this thing, but he gets his can of spray paint and he’s like, Cory, turn, turn around real quick. So I turned around and he, he spray paints a d.

So Gary’s laughing, you know, and he’s like, well if you’re going to go around being dumb, I’m gonna, we’re gonna, we’re gonna go ahead and label it today, man. You know, I mean, listen to, some people would listen to that and go, oh my God, that was horrible. But man is some of the best stuff. But this was his quote. All right. After that story, his quote was, if you don’t have enough time, do it right the first time. When are you going to have enough time to do it again? Sure. And I’m not that this is extremely relative, but I will tell you, uh, that, uh, making a bad hire really can set back the progress that you were expecting to make. And every time you make a hire, or at least with a small business like ours, we’re expecting and hoping, oh my gosh, look at some of the bandwidth that this might give us.

If everything goes well, we’re probably going to add this much revenue to our company. But when, when it doesn’t go so well, it real, it just sets back in. Sometimes it takes a little bit of time and so it doesn’t happen as quickly as you want it to, you know, all of these different things. But, uh, just don’t get yourself caught where someone who really knows what they’re doing thinks about painting a deal back. Is that the moral to the story of gray moral thing? I don’t know that that’s a great moral, that might have been a waste of everybody. No, it was good. That was good. But, uh, no, I mean, it’s better. Like you’re saying, I mean, it comes at a cost, you know, about hiring mistakes, it’ll set you back and I’ll set your, your, your company back, um, from your company goals.

In my Lucy clients, we were talking about that before Cory and I before we started this. And, and uh, you know, additionally, you might even have some people that, um, that are so bad that they’ll make your, a players want to leave. Your players don’t want to be around that culture and that’s not good. Well, the good news is is we have five errors that lead to bad hires. We’re going to talk about them, hopefully will help, uh, bring up some ideas for some of our managers out there. So, um, the, the very first one is your interview process isn’t standardized along time ago, when I was in college, I learned only one thing, um, from statistics. And I’m telling you, I learned nothing from statistics because our member, like, I think it was like 90% of the class was failing and I had a d in somehow they gave me a B.

I mean, nice man. Yeah, that’s how bad stuff everyone was going to fail. So the teacher change things up, bumped it up a little bit. I learned nothing. But I learned this is that you have to use the same kind of criteria to, to judge or to measure, uh, whatever it is you’re trying to learn about. So, um, when you’re interviewing, you need to have the same set of questions to ask every candidate because if you just rely on, all right, let’s go in there and kind of start asking questions as it goes, you’re going to end up with what we call in statistics as skewed data. Um, and that skewed data is not going to give you a good understanding on, or a good comparison of one versus the other. Many people make this hiring mistake because listen, we’re all crazy busy and maybe you didn’t, you just don’t have a standardized hiring system.

Maybe you just want to go in there and talk with people and kind of feel them out. But over time, uh, many studies have shown that this is a very unreliable way of making a good decision. And we’ll talk about it here in a little bit, but, um, you’ll even want to begin to try to, uh, to quantity to quantify, um, as much as you can in the, in the hiring process, especially in your interviewing. And I’ll talk about that here in just a little bit, but definitely make sure that you, have you had the same measuring tool for each candidate that you bring in? Yeah. For each candidate within each job, if you’re hiring for multiple jobs, you know, I’m not going to ask the same questions of a CNC machinist as I would for zone is going to go into accounting, you know, but within that job that you’re hiring for, I mean, as an example, we’ve got a few recruiters here are talking about CNC machinists and they have never recruited for that before.

And I hadn’t either when we had started recruiting industrial. And so I had to learn all that. And so I wrote down a list of the questions that I ask in those interviews and I gave it to them so they knew exactly what to ask. And I ask those questions of every person I meet and sure we talk about other things in the interview. I’m not just a robot in there, but you got to have those, you gotta have that fundamental, exactly as you have a process, you can measure everyone against each other equally and kind of, you have a little bit more of that standardized interviewing process. What you’re trying to do really is remove the emotional part of it. Um, you know, I’ve, I’ve had people that I didn’t like at first, like I really didn’t like them, but later on I found out, oh my gosh, like that was really the right person for me to work around.

Um, you know, this wasn’t here in our Tulsa Staffing company, but before, you know, when I met him and I was like, oh my gosh, I mean we just clashed. But then holy cow, where they such a great asset. Um, and then I’ve, I’ve had people that I loved when I very first met them and they were not the same person. And, and so, uh, that’s just gonna happen. You want to try to minimize that as much as possible? Yeah, definitely. And not saying that you have to take every ounce of that emotional drive out of an interview, but you know, there has to be a point where you, where you have to have a little bit of it standardized and those are some easy steps to do that. Absolutely. So the second one is the employer brand is very weak. Um, one thing that is especially present ever present in our Tulsa Staffing culture and um, with 50% of the workforce being millennials, if you don’t think they’re going to research your company and figure something out about what other people are saying about it or uh, what the presence is, um, you’re, you’re crazy.

I think that that is going to be almost anyone before they started companies, before they start with a company. And so you need, as an employer, you need to begin to think about what do people see when they go online to Google our company. One thing I would strongly suggest you do, this is something I do at least weekly, is I’d Google Trinity and see what new comes up. You wouldn’t believe how much changes like really you week, week, week to week. I don’t know what Google is in Google’s mind, but somehow they switch everything around. And so you’ve just got to keep a good beat on that. Um, if, if people are saying bad things about it, about you want to review, you might want to respond and give them your side rather than just ignoring it. Um, there are all sorts of different things that you can do to protect your brand, but I would suggest that you put effort into creating, um, to creating a positive top brand for trinity.

What we do here, we spent a lot of time, uh, uh, making sure that we do things to where people will write a Google review about us. We spend a lot of time with that. We make sure and optimize each one of our Tulsa Staffing pages. Um, news flash, it doesn’t take a lot. You know, we just make sure and optimize our Tulsa Staffing linkedin page or glassed Glassdoor page. I’m working on Yelp because Yelp is now getting to be a big deal. Um, and you know, Facebook or Facebook page, Twitter, all of those things get a little bit of an update. And one thing that we do here at Trinity, you can use different types of sites. We use hoot suite. You can use hoot suite. And so what happens is, is it will, if you, you can do one update and HootSweet and it updates all of your Tulsa Staffing social media platforms, but social media is such a big thing and it can really help you in your marketing and improving your employer brand that you’re mentioning earlier.

I think it was from careerbuilder.com. I can’t remember. But the study said 82% of candidates will be looking at your social media profiles, your social media pages, um, before going into an interview, before going into an interview, not even before accepting a job. So it is very important and it’s important not just to have those things and keep them up to date, but make sure that they are reflecting, um, your company’s atmosphere, your company culture. Um, that’s very important. You don’t want someone to, to get in there thinking, oh, they look like a really great group, fun group. And you get in there and it’s, it’s very, very different. You want it to be able to reflect you accurately. Not only that, um, and we’ll, we’ll end on this, but, uh, man, you can, you can bring your customers to you that way as well.

If you don’t think you’re, if, if you think that your customers aren’t gonna look at you again, you’re crazy. And so it helps in two ways. It will employ, it will help you in your recruitment process as well as recruiting and bringing in new customers. Um, the next, the next topic that we have is the candidate experience isn’t being optimized or mobile friendly. And, um, I can talk, uh, in a refreshing way about this because I just dealt with this. I was at a conference and they asked us to get on our Tulsa Staffing website and apply for a job and we went to go do that. And after about four or five past, no, it was, it wasn’t even there. I was like three or four. They said, all right, you have just passed what most human beings will spend on the phone trying and that’s likely going to be how they apply.

And so we had, in fact, ours took about 15 minutes. Whereas, um, you know, the, the statistics say it’s only going to be a three to four. And Ritz Carlton did the study. They, they basically set, uh, they, they put somebody in line to see when is it that they’re getting agitated. And in 1986, it was about eight to 10 minutes. And uh, in 2017, it was one and a half. Wow. Wow. Where, and so what Ritz Carlton was trying to figure out was, hey, um, at what point do we need to have somebody come up and offer them a beverage? Sure. And just get their mind off of it and show them that they’re being served. And that’s what you know that that was their study will. Same thing when it comes to applying online. Listen, you’ve got about two to four minutes and that’s it.

So go through, my suggestion would be just do what? Do what me and amber did, you know, go and apply online and see what it’s like to apply on your website. Yeah. See how long it takes and see what parts are really frustrating to do and what part seemed like this. Yes. And things like that. And may just keep a notepad next to you and jot down notes and then go change it. You know? I mean it’s, it’s not worth losing candidates over. Right. You know? Well it’s a pain in the butt to change. Yeah. I mean like a big one. Yeah. Well I assume that, but I bet I bet it’s worth it. I bet that sentence right there is what has made so many are not so many, but some companies not change it and then lose cannon. He was that, but we had no clue.

Yeah, we didn’t. We just wanted, we, when we set it up, we set it up. All right. What information do we want? Sure. We just put a plethora of stuff as much as we can get a long time. But we had, we just didn’t think of that when we set it up, but it really is a pain in the butt to move now as a get ready for it. But it’s worth it. I promise you our Tulsa Staffing internal application process has skyrocketed since we’ve done this. Yeah. Yeah. Very true. Yep. Um, the next one is not enough, is being invested into the onboarding process. And this is very true. Um, a lot of people will just flat out leave, um, or they’ll start talking, um, or they’ll start looking, um, all or they’ll start hurting the company. Yeah. And if they’re not onboarded correctly, they just try and do it on their own, you know?

Well, and you know, I asked you right before we started this, can you imagine, had we not trained you? Yeah. Can you imagine the learning curve? I mean, I learned curve as a recruiter is tough enough already. Yeah. I had never done recruiting, never done staffing. And so from the beginning I was totally lost. And so if there wasn’t a solid onboarding process, I, boy, I wish I would have crashed and burned well. And we’re always developing. We, we’ve changed it a little bit. We’re getting ready to bring on a new employee and it’s going to change for them as well. We just revamped it completely because even though we put a lot of effort in, when you brought, when you were brought on there, there’s many things we were like, man, we need to improve this and that. So I think it’s always something to be thinking about.

The last thing is there’s a lack of data in the pre employment selection process. Man, check your dag and references, check those things. Um, I wouldn’t even pass that on to an assistant or something like that. I would check it myself, especially if it’s a key person and I would ask a strew of questions. I’m going to Google. I want to suggest that you do this in top in great questions to ask a references for employment and you will get some good insightful questions. Create a system. Same thing we talked about for interviewing your candidate. Interview your references the exact same way as the same questions. Have that thing set up and um, and don’t just ask a couple of questions, get stumped and move on and ask some really difficult questions. Uh, I’ve, I’ve saved ourselves some from so much, uh, bad hearts. We’ve got one really great story that I, that I share, um, that if you’ve listened to this, you’ve heard before, but I think that that is so very important.

Do you have anything to add before we get out of here? I mean, what’s the phrase that we say all the time, all the time in order to everything is knowledge is power, right? And so that right there a lack of data, a lack of knowledge and the preemployment preemployment selection process. It’ll hurt ya, but having more knowledge, I just gives you power to make the right decision. Yeah. And, and listen to their voice. Yeah. Listened to their voice and the way that they, how confidently they answer questions and read some into that as well. Listen, if trinity can help you out in any way, we have an 80% placement rate in the people that we staff. I believe that we are one of Tulsa’s top staffing firms. Uh, you can see that in our reviews. You can see that in the way that people interact, uh, with us and how they do. I’m extremely proud of our Tulsa Staffing team. You should get a chance to know our Tulsa Staffing team. I think you’ll be glad you did. You can give us a call@nineoneeightsixtwotwotwofiveeighteightoryoucanvisitusonlineattrinityemployment.com.