New York, NY -- (ReleaseWire) -- 03/16/2007 --Human Capital drives organizational performance. Competition to identify, hire and retain top talent continues to increase with Gen Xers and Millenials stepping into new roles as Boomers seriously contemplate their next “passage.” Many of our Client Companies are responding by casting wider nets for external talent, and linking part of incentive compensation directly to a hiring manager’s ability to attract, retain and develop talent. Hiring the right individual for your organization can be costly, but not nearly as much as hiring the wrong individual.
While similar in many ways to selecting the right person for an internal promotion, external hiring carries additional risks. Interviews, references and reputations are all important pieces, but how do you really get to know and understand the person you are considering? How do you understand their strengths – cognitive, creative and otherwise? How do you learn about possible conflicts between your needs and culture and a person’s preferred style and personality traits? How do you identify a person’s leadership style? Learning as much as you can about each potential employee will help you make better judgments and reduce the risk of a hiring mistake.
Our experience with senior leadership tells us that hiring mistakes can cost companies as much as 100+% of base compensation, much more than the 30%-40% estimates currently published. If you make a hiring mistake, you need to address it quickly as the cost and risk will only increase. If you factor in severance and other separation costs, search fees, relocation expenses, lost productivity and training and development (requiring a new learning curve), replacing a VP of Operations earning a base of $230,000 can cost upwards of $250,000. This does not include intangible costs like a department’s loss of credibility with the rest of the organization.
Third party assessment is more cost effective than ever.
BeamPines offers a high-impact Psychometric Selection Assessment process that is grounded in validated assessment tools and delivered by qualified psychologists with business acumen. Our process is used to evaluate the “fit” of a potential employee related to a particular role, business and culture. Each client-driven Assessment provides actionable insight for hiring managers beyond the actual selection process. HR managers can further use the knowledge gained to effectively assist in the on-boarding process and in the creation of high performing teams. Knowing what you’re getting and establishing mutual expectations can help avoid early derailment.
Selection Assessment is a small investment in protecting your Human Capital. Every other capital investment your company makes of this magnitude is subject to due diligence, research and risk reduction processes. BeamPines has successfully completed over 11,000 Assessments since 1981 and is positioned to help you identify the functional ability, cultural adaptability and leadership potential of all your new hires. This investment will help you identify and integrate the best people for each position; reducing your risk while increasing your rate of retention, productivity and your bottom line.