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WHY YOUR RECRUITMENT PROCESS IS BROKEN AND HOW TO FIX IT
We caught up with Understanding Recruitment's Founding Director, Dale Swords, to talk about the latest issue affecting the hiring process. We all have biases we aren’t aware of. It’s a human trait, to be more attracted and form stronger bonds with people who act and look similar to ourselves. After all, familiarity is comfortable. But this is exactly the bias that’s breaking your hiring process one interview at a time. Would you say most hiring processes are broken? In my experience, companies that are growing quickly sometimes haven’t been deliberate enough about their hiring process and end up allowing unconscious biases to creep into their decision making. Although a lot of companies are already aware of this issue and claim they are trying to make their hiring processes less biased, it is easy to fall into the trap. In many cases, people don’t even realise they’re doing it. How do people know if they have biases and what do these biases look like? We all have our own biases but aren’t necessarily aware of it. It’s an almost hardwired trait and isn’t necessarily malicious or prejudice. Most CEOs understand the concept of unconscious bias but don’t believe it’s happening at their company. And that’s the problem. If the bias comes from the top down it can easily get embedded into an organisation. Some examples of unconscious bias are judging people on their name, gender, origin, the University they attended, and the titles they’ve held. It can also be the initial feeling they give you based on their looks or even what they’re wearing. Whichever it is, the outcome is that people are discounting the candidate from the hiring process or making them the first choice for the wrong reasons. Why is unconscious bias a hazard in the workplace? Encouraging certain hiring processes means they become the norm. Because of the biases, a lot of talent is missed out on because they “didn’t fit” the profile the hiring manager was looking for. When people involved in the hiring process are encouraged to look for a certain profile or behaviours, that negatively impacts business performance. You could be losing out on talent without knowing it. There can also be legal implications around discrimination. Why is it so important for the hiring process to eliminate unconscious bias? It’s all really about fairness and inclusiveness. Companies that embrace diversity are proven to be much better positioned for innovation and perform better. It also creates a more diverse and inclusive company which research proves makes for a far more productive and successful business. Can a broken hiring process be fixed? The good news is that the easiest place to remove unconscious bias is in recruitment. Taking the time to make biases visible will help companies address them and improve the diversity of their teams. We advise our clients to work with standardised competency-based questions, making sure questions don’t vary between candidates so they are interviewed objectively. Letting interviewers pick their own questions means that their experience of the candidate can vary. While some people might just have a friendly chat based on common interests, others interrogate the candidate. This means that candidates often end up being recommended for the role based on a personal connection rather than their ability to do the job, a fact often supported by the company’s staff retention rate, a statistic often ignored. Having different people with multiple perspectives involved can also help check the unconscious bias of any individual during the interview process. Who is responsible for it? I think it’s the job of everyone involved in the hiring process, from the hiring manager to the person writing the job description, to be mindful of diversity every step of the way. What role will artificial intelligence play in the future of recruitment? AI is everywhere. Lots of companies use chatbots to run initial job interviews. For example, Nike and Intel use intelligent video software to analyse 25,000 data points from video interviews. AI can see around our biases and is a great tool to extract human emotion, but at the same time, that’s what works against it. While it means people are getting the same chance regardless of gender, ethnicity, age, or University attended, I don’t think AI will take our jobs away any time soon. Technology just doesn’t have the human traits needed to make a well-rounded hiring decision, but it helps make it fairer. How is Understanding Recruitment dealing with the issue? In the long-term, we aim to help clients gradually shift away from contingency-based recruitment towards a more dependable and focused search approach that supports them in reducing their staff retention, improving their hiring process and enhancing the recruitment process for everyone. Do you need help bolstering your tech team? Get in touch! Form ID:3643
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HOW MUCH ARE BAD HIRES REALLY COSTING YOU?
The tech industry is booming. While that is good news, it means that the war for talent is raging on with no sign of subsiding. Highly skilled IT professionals are finding that they have their pick of jobs, and no matter how great the perks found across the tech industry are, tech organisations (even the giants of the industry) can’t totally avoid the job-hopping nature of today’s workforce. While talent shortage is set to be the single biggest hurdle faced by recruiters across almost all industries, a recent PayScale report shows that the employee turnover rate among Fortune 500 companies in the IT industry is the highest among industries surveyed. Chances are that employee retention is an issue in your business. And you’re not alone. Nearly half of all employees across the UK are worried they won’t be able to find the talent they need with over three quarters saying they are struggling to find relevant candidates. With employers so keen to fill tech roles quickly, there is a temptation to just hire on instinct (or in some cases, desperation), making bad hires a growing issue across the industry. What is a bad hire? We define a bad hire as somebody who leaves your business within the first year of their employment. But it is also someone who just doesn’t have the skills to fulfil their role, who underperforms and doesn’t fit seamlessly into the rest of the team. According to the REC’s latest report, 85% of HR decision-makers admit their business has made a bad hire. 1 in 3 HR decision-makers also think it didn’t cost the business anything when they hired the wrong person, while 1 in 5 stated that they don’t know what the cost of a bad hire is. What is the true cost of a bad hire? Everyone knows that hiring is expensive. But so is re-recruiting to replace people who turned out to be bad hires. There’s the cost of creating job descriptions, advertising roles, reading through CVs, and carrying out interviews all over again. And it doesn’t stop there. After a new hire joins the business, you need to facture in onboarding costs and training. In most cases, the true cost works out to be roughly 3.5 x their annual salary which, clearly has a negative impact on business. What are the consequences of a bad hire? Apart from the substantial monetary cost, a bad hire can affect team morale and lead to low productivity. They also have a detrimental effect on your brand reputation over time as they are likely to interact with your customers. Poor performers lower the bar for other employees and bad habits spread like a virus. If an employee is not working to their full capacity, there is bound to be a knock-on effect on the rest of the team. According to Agency Central, 39% of hiring managers said poor hires had cost them productivity. When a team is struggling with lost productivity they may be urged to start assuming additional duties that aren’t really part of their role. In addition to impacting their own performance, it will also affect their ability to meet deadlines and targets. The negative change in the team’s morale will almost always be one of the first indicators of a bad hire. Disengagement is contagious, and the resulting toxic atmosphere puts your remaining employees at risk of leaving also. In the long run, it’s more difficult for managers and their teams to accommodate a poor performer than it is to invest in recruiting quality candidates. It’s clear that the cost of not firing a bad employee far outweighs the cost of keeping a bad hire in your business. How to avoid bad hires While there’s no obvious formula to avoid making bad hires, there are ways to retain employees for longer and conquer the battle of talent. Businesses can start with promoting a flexible and inclusive workforce, implementing soft skills assessment tools and properly inducting new recruits. Low pay, lack of clear career progression opportunities and no flexible working solutions are the main reasons why employees leave. By boosting these, businesses can increase engagement, productivity and teamwork, while also retaining talent for longer. Investing in learning opportunities and innovative training provides a better and more immersive experience to employees while also developing the next generation of leaders. A recent study by Udemy uncovered that 46% of employees cite limited opportunities to learn new skills as the top reason why they’re bored in their current roles and looking for a change. For more tips on how to fix your recruitment process check out this blog. Tools you can use Using a specialist recruitment agency can dramatically reduce the risk involved in taking on a new employee. Consultants are experienced in matching the right candidates to the right employer daily and are skilled to spot the tell-tale signs of a bad fit from the get go. Dale Swords, Managing Director Understanding Recruitment, recently told the Global Recruiter: “We have a responsibility to our clients to make sure that we offer the solution to an industry wide problem. Ultimately, finding the talent others can’t is what separates the good from the great recruiters.”
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HOW TO STEP UP YOUR SALARY NEGOTIATION GAME
Whether you’re at the offer stage for a new job or are gunning for a promotion at your current one, honing your negotiation skills is crucial to getting the salary you want. Yet surprisingly, a survey by Salary.com showed that only 37% of people always negotiate their salaries while 18% never do. In addition, a staggering 44% of respondents claim to have never even approached the subject of a raise during their performance reviews. We’ve put together some tips to help you take your salary negotiation game to the next level! 1. Understand your worth Always use research to inform your negotiation technique. Walking into a negotiation prepared will make the outcome so much better. The better prepared you are the more confident and informed you will come across. If you don’t have an exact salary figure in mind your Manager will have the upper hand from the start and will take control of the conversation very quickly. To avoid this, find out how much the job is worth and then research how much your skills and experience are worth to the company. The Glassdoor salary search is a great tool to do this with but most jobsites have a tool to help you find this information. Speaking to a recruiter can also be useful as they know what people with your experience are worth. Research the salary range for people in similar roles to you to give you a better idea of what you should be earning. Remember this will differ largely depending where you are located and the industry you work in. Once you find a range, set an exact figure that you would be happy with that is both realistic and leaves room for negotiation. To be on the safe side, always ask for more than what you want as your Manager will want to feel like they negotiated with you and got a good deal. 2. Timing is everything After you’ve done your research, you can set the wheels in motion and book a meeting with your Manager. Many people wait till their performance review to start negotiations, but it’s a better idea to start talking to them three to four months in advance, as this is when they set the budgets. According to The Muse, several studies show that you’re most likely to get a raise if you ask on a Thursday as people become more flexible and open to negotiation closer to the weekend. Whichever day you opt for, double check your Manager is available for the meeting and schedule it into their calendar, so they don’t forget. Make sure you have a space for your meeting that is confidential to avoid having an awkward conversation in the hallway. 3. Be persuasive but stay flexible Every negotiation will have an element of back and forth, so you need to be flexible but still stand your ground. Be prepared for some resistance and be sure you have put together a case to show why you deserve the salary figure that you’ve put forward. This is the time to sing your own praises so put together a summary of all your achievements, awards won and testimonials you got from your colleagues. It’s a good idea to talk your Manager through your achievements before you start talking numbers. You can also give them a printed copy of your summary of achievements to look at while you talk them through it. But don’t make it all about the past. Make sure you outline your plans for the future. What projects are you going to take on and how will this help your Manager? Will it free up their time? Do you have ideas that you want to own and implement? Try to put yourself into the shoes of your Manager. What is important to them? Listening during a negotiation is a hugely important part and will let you understand the needs of the person you’re negotiating with. How can you sweeten the deal for both of you? Instead of being forceful, try to convince your Manager that it’ll benefit the business to pay you more. Be sure to listen and understand their views as well as getting your point across. Present all your facts and give them time to consider your proposal, as they will probably have to run it past Human Resources and possibly other Managers. Don’t expect an answer immediately. 4. Consider your options A ‘no’ doesn’t mean the end of the negotiation but usually marks the start of it. If your Manager seems uncomfortable with the figure you have put across ask them why this is and what you can do to convince them to move in your direction. To come to an agreement, you both will have to be flexible, but you need to still stand your ground and not accept an offer that is too low. If your employer has made a counter offer it’s ok for you to ask for some time to consider the offer. Doing this will make sure you don’t panic and accept a minimal increase. When it’s an initial job offer you can also make a counteroffer 10-20% more than their offer. Consider that your benefits are up for negotiation as well, so if your Manager won’t budge on your salary increase, they may be more open to enhancing your benefits such as additional holiday, training or flexible working. Sometimes these can be just as valuable as a salary increase. 5. If it doesn’t work out Most departments have budgets assigned by the wider business and sometimes it might not be possible to give you a pay increase at the time you want one. There may be factors that aren’t known to you so have a plan B in place. It may be that a raise is possible further down the line, but the timing isn’t right now. You need to know the point, you want to walk away from negotiations. Consider what you want to do if the answer is no or the figure is much lower than what you had in mind. Consider the whole package including the working environment, benefits and job role. Is this enough to make you stay without a pay increase? If the company won’t pay you what you’re worth, looking elsewhere may be the best option. But don’t burn your bridges just yet. You still want to keep working with this person for now so staying positive throughout the conversation is important. Once you’ve successfully negotiated a raise, make sure you get a written confirmation of all the details including how your responsibilities will increase.