Guest Blog by Jennifer Mackin, president, the Oliver Group, a PI Member Firm
Despite the high unemployment rate, many employers are still grumbling they cannot find skilled workers. In a recent Wall Street Journal article “Why Companies Aren’t Getting the Employees They Need,” Peter Capelli writes that “employers are quick to lay blame. Schools aren’t giving the right kind of training…. The list goes on and on.” He goes on to add, “But I believe the real culprits are the employers,” shining a light on the reality that many companies are making bad hiring decisions from the start, not providing adequate training for their existing employees or doing enough promoting within their own company.
The unemployment rate for professional workers over age 25 with four-year degrees sits at only 4.2%, although the unemployment rate at large is 8.5% or higher in many areas of the country. Employers need to be looking at all levels and roles in their searches for top talent for their highly skilled positions, both internally and externally. After all, the cost of making the wrong hire is high, with some estimates placing the cost at 100%-150% of the individual’s salary.
To reduce the risk (read: cost) of hiring someone who is not likely to succeed in a particular job, companies are turning to behavioral assessments to determine the fits and gaps between a job candidate and a specific position. In the cases of our numerous clients, the Predictive Index® (PI®), a proven and reliable workplace behavioral assessment has helped expedite and simplify the search process, ensuring the right people are in the right roles from the start and throughout their careers with the organization. By allowing the employer to pinpoint candidates who express the ideal behaviors for a specific job, organizations are more likely to attract and retain the right talent for the long term.
The PI can also help employers promote from within, which can save a tremendous amount on recruiting expenses, onboarding time and retention costs. You probably have a High Potential employee sitting right under your nose. With the right training, it will allow them to transition to new responsibilities and demands in your organization, while leveraging their natural strengths. For instance, additional technical training for up-and-coming employees or a leadership development program for your managers would prepare them for future challenges.
Employers commonly hire by using their “gut,” but organizations can hire smarter by using a metric-based model and taking an objective look at the talent pool, inside and outside of your organization.
Jennifer Mackin is President and CEO of The Oliver Group, a PI Member Firm headquartered in Louisville, Kentucky. The Oliver Group has been a valued leadership consulting firm for over 25 years.