3 Reasons Why Organizations Make Bad Hiring Decisions

A leading fast food chain had a problem. Customers were unhappy with the service they were receiving from frontline employees; service was slow and painful. McKinsey’s People Analytics team quickly identified that the crux of the problem laid with its people. By leveraging insights into what characteristics make for good employees, they were able to revamp their hiring process to be more targeted and efficient. This example illustrates an important point: People are your organization’s most prized asset. Hiring better people, using a rigorous and formal process, leads to concrete improvements in your organization’s operations and financials. So, why do organizations consistently approach this in an unscientific, informal manner? First, the nebulous nature of performance ratings and difficulty in identifying objective metrics makes it tricky to determine the quality of a hiring decision. Second, conclusive hiring outcomes occur years after hiring decisions and, worse yet, success criteria often go undefined. And third, The landscape of talent assessments is fragmented, characterized by a large and growing number of approaches, methodologies and vendors can create an assessment and stamp it as valid.

Reference: https://www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/3-reasons-why-organizations-make-bad-hiring-decisions