Smarter Hiring Practices

The cost of a bad hire

In a survey last year, 750 hiring managers gave themselves a collective C- for the quality of their hiring processes. That same group was responsible for hiring over 81,000 new employees in 2017. Yet the decision to hire is often the single most important decision we make in our organizations. Why aren’t we better at it?

This isn’t news to most managers and recruiters. According to studies, 46% of new hires are terminated, leave under pressure, or receive significant disciplinary action and negative reviews within their first 18 months?** Bad hires have created a revolving door in our organizations that impact everyone:

  • It’s bad for employees: Hiring the wrong person can needlessly rattle their confidence.

  • It’s bad for managers: Managing a bad hire is exhausting and makes us skittish about re-hiring.

  • It impacts your team: A struggling peer is traumatic for morale and productivity.

  • It’s draining on HR: Exiting and rehiring employees saps energy and resources.

  • It cheats the organization: Bad hires cost your company in lost hours of productivity and expensive mistakes—not to mention recruitment fees, interviewing, and onboarding a replacement.

The barriers to a good hire

Despite our dismal collective track record, everyone wants to make a great hire. So what turns our A+ intent into C- results? Most often it is because we are looking at the wrong data—or worse, looking at no data at all.

Too often we rely on our subjective gut-reactions to candidates—letting cognitive and social biases to guide our decisions—instead of using objective data with a scientifically proven correlation to on-the-job success.

We tend to lean heavily on unreliable information like:

  • Resumé buzzwords

  • Education and pedigree

  • GPA

  • Friendly references

While these factors may give us insights into candidates’ pasts, they tell us a lot less about their future with us— because they cannot reliably predict performance. They also open the door to those biases that sway our decisions toward the wrong hires.

Objective hiring is smart hiring.

Move beyond your gut and apply a repeatable methodology, and you will create predictability in your hiring that will save you time and angst and result in consistently better hires.

  1. Start simply, by crafting a profile of the ideal candidate for each job. Use the PI Job Assessment to collect input from managers, key stakeholders, and high performers to define the precise behavioral and cognitive needs for each position. This will establish an objective baseline to better predict person-job fit.

  2. Once you have defined the job target, invite your candidates to take the PI Behavioral Assessment and PI Cognitive Assessment. The results will help you sort potential hires by how well they match your objective job requirements—easily winnowing down to a short list. Using these assessments will also level the candidate playing field, removing bias from the hiring process.

  3. Finally, get all your interviewers on the same page by customizing a PI Interview Kit based on each candidate’s behavioral pattern and the job target.

How do we know it works? With more than 60 years of science, 6,500+ clients, more than 350 validity studies, and more than 27 million assessments under our belts, The Predictive Index has demonstrated countless correlations between behavioral traits and on-the-job performance.

© 2023 by Coach.Corp. Proudly created with