Most companies invest a large proportion of their revenue on securing, training, and retaining talent – indeed, payroll is often the biggest expense on the company ledger. The reason for this is clear – in the modern world, a company’s staff and people are often the only real differentiator they have from their competition. Companies that succeed in creating and maintaining a strong sense of culture and engagement are consistently shown to outperform their peers on every measure, from productivity and retention, to innovation.
Why then is the process still so full of risk? If any other company investment, or a merger or acquisition were made on such odds, shareholders would be right to be worried:
- Average success prediction rate from written documents: 14%
- Average time spent screening each resume by staff: 6-8 seconds
- Average % of applicants interviewed: <10%
- Average % of applicants paying for professional writing services: 30% (global)
- Average % of applicants admitting to exaggeration of achievements: 70%+
The traditional hiring process attempts to assuage these risks with referee checks which themselves are highly fallible, particularly for less scrupulous applicants. In a due diligence sense these measures would be considered preliminary – not the final word in making an investment decision.
The equivalent would be agreeing to marry someone based on a letter they sent (or indeed paid a professional to write), a doctored photo, and a quick coffee meeting / interview under artificial circumstances.
Sure, you can divorce. But how costly is that?