Two Hiring Mistakes that Skyrocket HR Risk

Two Hiring Mistakes that Skyrocket HR Risk

by Angie Rupp

We began our discussion about assessing and managing HR risk in the first part of this post. Just to recap, we spent some time discussing how crucial it is for HR to shift the focus of their position from being compliance centered to being more aware of the risk they create with poor hiring decisions.

If we’re measuring HR risk from a strictly financial perspective (which matters most to your business), then the cost of a poor hire far outweighs the cost of a minor compliance infraction because a poor hiring decision could follow you for 30 plus years…and cost you millions in sales or revenue loss. Don’t believe me? Check out this infographic from Recruiter Box.

By dismissing the notion that you have the potential to play a huge role in the HR risk associated with your company because you’re too busy hiding behind compliance, you’re doing yourself (and your organization) a huge disservice. After all, the fastest way to climb the strategic ladder is through understanding your contribution to your business’s bottom line: money.

If you were previously unaware of the HR risk you supply to your company, or worse, have been too caught up in the other high octane demands of your job to notice the role you play in HR risk, then here are three ways you may be putting your company at risk by making poor hiring decisions.

Applicants value their time, and so should you.

HR Risk #1 – Relying on Ineffective (Outdated) Communication Methods

Applicants value their time, and so should you. You should also respect your own time (especially since it’s on the company’s dime) by choosing methods for communicating with job candidates that are efficient and statistically most likely to garner a response – yes, we’ve reached that pivotal point in our tech bubble wherein text messaging is the fastest and most reliable channel for communication.

Think about it. How many of your service providers offer the ability to send text reminders for appointments, now? At least double from about three years ago, I can guarantee that. The convenience is unsurpassed and it ensures that the sender’s message is received on the receiver’s timeline. And it doesn’t waste time. The same goes for trying to communicate with applicants when you’re trying to set up an interview time that aligns your schedule and your job candidate’s schedule. You can choose an applicant tracking system that has this feature automatically built in to its platform. Optimizing this piece of the hiring process because it cuts down on time-to-fill and thus reduces HR risk.

HR Risk #2 – Skipping Job Personas

If you’ve been a follower of ours for a while now, then you know that our primary goal is to transform HR professionals into killer marketers because recruiting quality applicants is along the same vein as marketing products/services to clients. One of the best kept marketing secrets is to create buyer personas because they help you understand your clients on a deeper level thus enabling you to sell more and create a higher level of customer satisfaction.

One of the best kept marketing secrets is to create buyer personas.

Relative to HR risk, the same mentality should be applied to each of your job openings. You want to spend time understanding exactly the type of applicant (persona) that would be an ideal fit for your position. The easiest way to go about this is to ask the department manager a lot of questions. Without a thorough understanding of the characteristics your ideal applicant would possess before you write the ad, you’ll waste time attracting the wrong person (or people) to your ad which increases HR risk and hiring overhead. You’ll have higher turnover and spend more trying to fill your opening with the right person next time.

Still feel like you can’t quite get a handle on mitigating HR risk? Our hiring experts can help! Give us a call for a free consultation today.


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