Informed hiring decisions improve retention—and productivity

Every electronics business, in one way or another, battles the "80/20" rule: Whether in production, administration or sales, 80% of the success generated within an organization stems from the combined efforts of 20% of the workforce.

Most of the causes for this can be traced to the way we evaluate and select employees. No amount of training or managing can stimulate a miscast employee to perform at the level of one who fits his or her job and therefore naturally excels in the position.

Every manager has hired a top performer. However, research shows that more than 63% of mid- and low-level producers are hired the same way—using "gut feelings" experienced 4.3 minutes into an interview. At a time when two out of three employees admit they don't like their jobs—and two out of three disappoint in their first year of employment—companies must change the way they hire.

Companies that recruit, select and retain quality, qualified employees have higher attendance records, greater job satisfaction, less turnover and superior job performance—all major influences on company success and revenue.

With turnover costing anywhere from 33% of annual salary for an entry-level position—up to 250% for management and sales positions—companies no longer can afford to hire based strictly on the invalid criteria of the past: image, experience and education. Managers can avoid most turnover and productivity gaps by staying current in hiring practices, using technology to gather all the available data on a candidate and matching the right people to the right jobs.

Imagine developing or marketing a new chip or other electronics product that hasn't been thoroughly planned, reviewed and tested. Even if we thought it was a good idea, felt it would work out or hoped for success in the end, the industry and our company couldn't afford to act this carelessly.

Companies no longer can afford to hire based strictly on the invalid criteria of the past: image, experience and education

Employees are the ones responsible for developing, producing and marketing these products. Knowing that, how can managers continue to base hiring decisions on how they feel, think and hope, rather than on data?

Until a company analyzes and specifies—on paper—the traits, interests and skills of the ideal candidate, it will continue to gamble on the productivity and retention of every new hire or promotion. Hiring managers need a roadmap that helps them narrow the field of candidates and identify potential hires well suited to the position they're filling.

Systems need to be in place for hiring at all levels of a company, from engineering and production to sales and management. All of these systems need to be developed from up-to-date, written job descriptions, job success patterns built from these job descriptions and benchmarks of the top performers in similar positions.

Assessing, documenting and benchmarking top performers, enables a company to discover characteristics, interests and abilities they have in common—and use that information to hire more employees just like them. In addition to job placement, managers also can use this data to discover what adjustments an individual may need to make to fit into a position—as well as to train, educate and coach mid- to low-level producers to attain higher goals.

By making informed hiring decisions, and by putting the right person in the right job the first time, companies have been able to conquer the 80/20 dilemma—and, in the process, reduce costly turnover, improve productivity and sales and ultimately, boost the bottom line.