Most employers I know make big mistakes when hiring.

Yes, I know every hiring manager could talk about the person they hired who seemed to be a rock star only to turn out to be a dud.  I’m not talking about this situation, these kinds of mistakes happen to even the best interviewers.  

I’m referring to the big mistake of only hiring top talent when you have a need.  And the mistake of freezing hiring during economic or business downturns.  Or believing that you can pick and choose talent whenever you want. And, a couple of more mistakes.  Let’s explore them.

During an economic and/or business downturn the typical reaction of executives is to hunker down, freeze all hiring and wait it out.  The best leaders and organizations stay calm, rather than become short-sighted.  When other organizations are struggling and lay off talent, it creates a window of opportunity for companies to swoop in and hire talent that may not have been available before.  

Along the same lines, laying off workers as a reaction to a downturn in business or the economy is often a mistake.  Payroll for many companies is a big expense and it’s natural to consider cutting this cost. 

While there are no rules, many companies layoff the last people hired, which may be the most talented workers.  Before doing layoffs consider if the downturn might be short term and you can navigate through it.  If you have to do layoffs consider what your organization needs, and keep the talent you need.  Once you lay them off they will land somewhere else, probably your competitor, and will be lost to you forever.

Another mistake companies make is hiring only when they have a need.  I spent over 20 years in the recruiting industry.  There were many things I learned and one of the biggest is that the best talent isn’t always available when you have a need.  The skills/experience or background you need may become available before you have a need, and you should interview and consider hiring when that candidate shows up.

Every company has a weak link or two on their team.  Or a team member that needs to be moved to another role (if only you had their replacement). Your company may be considering a promotion or a new position in 6 months.  The point is great talent can make a good company better.  Passing over someone because of ‘no need today’ will likely be a decision you are sorry you made.

Jeff Bezos says that talent is the biggest contributor to Amazon’s success. Regardless of the product or service, you offer the true differentiator between companies is the people that work for you.  Let me give you a personal example.  I’ve been going to a cardiologist for years because of a heart murmur.  Recently I had to cancel the appointment as I was running a fever.  When I called to reschedule I was told the doctor didn’t have any appointments available for 6 months.  I complained about the time frame and was told “it’s not our fault you are sick, the doctor is very busy and you should be glad to get an appointment in 6 months”.  What?  I’ve seen this same doctor for 25 years, every year.  

What do you think I did? 

I found another cardiologist who could schedule me within a few months.  Do I believe my previous cardiologist cared that I found someone else, probably not but it’s an example of how people who work for you can affect a  consumer’s reactions and response?  Thinking your product or service alone will win and keep customers is faulty thinking.

The key to hiring is remembering that candidates have choices.  Every company wants the same top talent you do and will work to secure them.  Don’t lose sight of the fact that you have to sell them on why you, why your company, and what you are offering, and it’s more than compensation.  

Lastly, don’t ignore the importance of retaining the in-house talent you have.  They need to be nurtured and mentored. 

Employees infrequently leave due to compensation.  They leave because they don’t feel appreciated, mentored, have no idea about a career path, get stuck doing the same job because they are good at it….all the things you have control over.  Take the time to talk to them, find out what’s important to them and work with them to help them grow and develop.

Hiring only when you have an immediate need is what most companies do. 

The best leaders recognize that talent is what can make or break a company’s long term growth and success.  They take the time to nurture their existing talent and seize opportunities to hire the best when presented with the chance to do so.

When hiring checking references can tell you a lot about the person. 

Take the time to check references.  Download our Getting the Inside Scoop:  Reference Checking and let us give you ideas on the ins and outs of reference checking.