Standardized Approach to Hiring

By David Dodson
2020 | Case No. E715 | Length 13 pgs.

Too often we give lip-service to the importance of building a team and how important hiring is, yet for many organizations, they don’t back this up with action. The most common reason is that to hiring correctly requires a greater time commitment. Unfortunately, trying to save time on hiring in the short-term reduces productivity and company performance in the long term. It’s estimated that the full “round-trip” for an unsuccessful hire—when taking into consideration the time required to terminate the employee and hire a replacement—is 44 hours.

To solve for these problems, it is best to create a standardized practice across the company for the same reason that companies standardize most operating procedures. By standardizing, companies immediately eliminate the risk that a hiring manager will follow an incorrect approach. Standardizing also provides a feedback mechanism to review both hiring successes and failures. If managers hire using different processes, it’s almost impossible to review “what went wrong.” Only through standardizing can an organization iterate and improve its hiring practice.

Learning Objective

This note is designed to help students understand why it is essential for an organization to implement a standardized hiring process. After reading this note, students should be able to describe the common shortcomings in non-standardized hiring processes and offer specific recommendations on how to address them to align with best practice.
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