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Poor Hiring Decision Causes Firms To Lose Out On Talent

poor hiring decision
Business people standing with question mark on boards

To successfully recruit and hire candidates in today’s digital era, organizations must redefine the role of the hiring manager to be decisive, according to Gartner, Inc. Yet, more than three-quarters of hiring managers do not act decisively and lose out on tech talents. Reason: Poor Hiring Decision.

Gartner says the characteristics of decisive hiring managers include focusing on prioritizing future talent needs, broadening the candidate funnel, and sharing hiring decisions with experts across the organization.

“In the past, hiring managers knew what their hiring needs were, and they were able to sit back and wait for recruiting to deliver a shortlist, before making a straightforward final decision,” said Lauren Smith, vice president in the Gartner HR practice. “Now, hiring managers are operating in a world with more options and less certainty, and they are struggling to make high-quality, timely decisions about talent.”

In today’s hyper-competitive market, the stakes are high when it comes to getting hiring right. Decisive hiring managers hire 10% more high-quality candidates and 11% fewer low-quality candidates than typical hiring managers owing to Poor Hiring Decision. Additionally, organizations that drive decisive hiring manager behaviors reduce time-to-fill by 17%.

“Our research shows that the amount of time it takes a hiring manager to make an offer after interviewing is now 33 days — an 84% increase from 2010 to 2018,” said Ms. Smith. “This longer decision-making stage is causing a 16% reduction in candidates’ accepting offers. Ultimately, hiring managers are losing out on prime candidates because of this lag in decision-making.”

Recruiting executives and their teams must change how they partner with hiring managers. Three shifts will help them prevent Poor Hiring Decision. These shifts include:

Diversify inputs to shape future talent needs

In an era of fast-evolving roles and skills, companies should not rely on the hiring manager alone to determine and articulate future talent needs to save them from Poor Hiring Decision. In fact, Gartner research found that only 31% of hiring managers understand the vision their business leader has for their team.

A better approach is to have recruiting leaders tap into sources beyond the hiring manager to define hiring needs based on the future talent strategy of the organization, not what the manager needs in the short term. Potential sources of information on future talent needs include business leaders, the workforce planning team and the analytics team, which can provide their insight into critical questions, including:

  • What skills does the business critically need to grow?
  • What skills and roles are the competitors in this area hiring for?
  • What will the labor market look like in this location in five years?

Make candidate engagement a shared priority

Hiring managers are not spending their time where it matters — engaging with candidates. This is critical as candidates trust a hiring manager nearly four times as much as they trust a recruiter to provide the information they need to make a decision. To get hiring managers to prioritize candidate engagement, the recruiting function should focus on:

  1. Driving urgency for hiring being a shared responsibility
  2. Motivating leaders by connecting hiring to their leadership role
  3. Enabling hiring managers to easily source talent beyond their existing networks

Align the hiring decisions to expertise

In today’s matrixed work environment, hiring managers have lost direct insight into the roles for which they are hiring. Even with training on how to evaluate candidates, hiring managers are still making slow, poor decisions.

Leading companies recognize that the hiring manager should not be the default decision maker in order to avoid Poor Hiring Decision. Determining the right person to make a hiring decision can be based on skills expertise, but also by understanding who will work closely with the person in the role and who has experience in evaluating candidates for the role. Organizations are finding that instead of the hiring manager making the final decision, skills and/or decision-making experts are often a better fit.

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