Singaporean CFOs: Are you sure you hire the right person for the right job? Robert Half’s latest survey results reveal the overall majority—98%—of CFOs in the country admit they have made a miscalculated hiring decision, with almost one in four (24%) taking just two weeks to discover that they have hired the wrong person.
According to the study of 150 CFOs in Singapore, the most common reasons why new hires did not meet expectations include the followings:
- a mismatch of skills (43%)
- the candidate being underqualified (37%) or overqualified (35%),
- and a misalignment in attitude (34%)
What to do with a bad hire?
When asked what steps they took to address the poor hiring decision, 35% of CFOs say they terminated the employee contract, while 33% respectively developed a training program to develop the employee’s skills to the desired level, and partnered with a staffing agency to secure a replacement.
Close to one-third (32%) of finance employers decided to deal with the matter internally by looking for an internal vacancy the candidate would be better suited for and 28% adopted a ‘wait and see’ approach to see if the employee’s performance would improve.
The cost of a bad hire
The top three consequences of a bad hire according to the surveyed CFOs include:
- increased workload for colleagues (43%)
- increased stress on managers (43%) and colleagues (41%).
- increased workloads for managers (38%)
- lost productivity (28%)
- higher recruitment costs (27%).
Firms struggle with accurately calculating the cost of a bad hire
In addition, Singaporean companies struggle with accurately calculating the cost of hiring the wrong person. Robert Half noted.
- 41% do track the costs yet fail to compile all the data in a single overview
- 34% say some costs are not accurately measurable
- 12% do not track the costs closely
- 11% admit they have not looked at doing it
- 2% say they do not find cost calculation challenging
“Hiring the wrong person for the job can have significant negative repercussions for the business, with the cost of hiring the wrong applicant escalating beyond just financial repercussions, said Matthieu Imbert-Bouchard, Managing Director of Robert Half Singapore said. “Aside from causing a setback to a company’s productivity levels, team morale and stress levels can be negatively impacted which in turn highlights the importance of having an efficient, streamlined recruitment process.”
Advice for hiring managers
While determining an applicant’s suitability for a role, including technical skills, cultural fit and attitude can be challenging for any interviewer, Imbert-Bouchard has the following advice for hiring managers in Singapore:
- have clear hiring criteria in mind
- come to the interview prepared and implement a rigorous process in order to identify the “best fit”
- keep the hiring process on point and in line with changing market demand
- regularly review their hiring policies in order to balance the recruitment process with the right level of efficiency and rigor