There is no escaping the fact that human capital is often a company’s greatest asset. The right people actualise opportunities into results that boost not only business and financial growth, but inspire innovation.
By building a bigger pool of knowledgeable people, entrepreneurs can create different groups that all network and collaborate to deliver their unique skill-sets, be it strategic conceptualisation or creative support, ultimately your business’ growth will only benefit.
But how do you find the right mix of people?
The Cost of Mr./Ms. Wrong
It can take up to 6 months to 1 year to find out that you have made a hiring mistake and the cost implication is a big one. It is believed that a bad hire costs a business 50% of the employee’s annual salary. But it also goes beyond that, there is the cost of job advertisements, time associated with screening and shortlisting, administration and placement fees which impact your bottom line.
Once they enter your business there is the time associated with mentoring and training the person to get them to be where they need to be.
Realising you’ve made a bad hire takes time and in the months that lead up to the employees last day, your corporate culture could be severely disrupted.
Disengaged employees are likely to place strain on the rest of your workforce, while apathy and negativity may spread through your offices before the employee’s departure. But there is light at the end of the tunnel and all is not lost. It’s simply about learning how to find the right person!
Technology is Your Best Ally
Traditional hiring practices have become less accurate and difficult to measure, so in the information age it seems illogical that we are still using them.
We live in a world where technological revolutions are constantly changing the way we do business, and advances in recruitment technologies are reducing the chances of making a bad hire.
Through science and technology, entrepreneurs can now make informed decisions when making new hires, based on both culture and skills.
The right kind of technology can even automate part of the workflow that comes with repetitive and high-volume tasks of the HR function, leaving your manager free from CV diving, and giving them time to focus on the people in your business that are the right fit.
Through deploying people analytics using the data and data analysis techniques you will be able to understand, improve and optimise the people side of your business, thus improving growth and profit potential.
The logic is simple, predictive analytics to create a predictive model that determines future probabilities. Did you know that today there are algorithms that can predict potential and performance for recruitment, development and retention? Let’s not forget that machine based learning is not influenced, by emotional tags like personality, looks and familiarity. In fact, algorithm will only continue to learn from new data that is input to increase the accuracy of the solution it comes up with.
We all want the best for our business, and no venture is without risk. However, it’s also about mitigating that risk, and the simplest way is to do so is to make sure that the right people for your business keep revolving that door that creates opportunities for all.