Álvaro Cárcel, Partner.
First message: When it comes to people, there is no such thing as an exact science. Trying to select in a 100% scientific way is not only a mistake, but it is directly impossible.
That said, there is another extreme, very widespread in organizations, which is selection by mere intuition. Again, this is a mistake, and the failure rate (and the associated cost) is enormous.
Virtue lies in the middle ground, and in terms of selection, the middle ground means designing an objective selection process that helps make the best possible decisions.
And how is it possible to achieve the above?
Well, there are a number of relatively easy steps to apply (and some of them quite obvious), which have a strong impact on the success of the processes:
1. Definition of clear evaluation criteria. In other words, define the position well, both from a technical point of view (what experience the person should have) and from a personality point of view (skills, competencies, agilities, etc.).
2. Standardization of evaluation methods. This point is absolutely crucial, and organizations must make a decision on what methods or tools will be used for all selection processes. Specifically, we especially recommend the inclusion of structured interviews, some type of psychometric and personality test (which has high reliability, validity, and international certifications), some type of simulation exercise or Business case (adapted to the criteria to be evaluated), and the request for references.
3. Training of hiring managers. Again, there is a great temptation to select by feeling or intuition ("I like this person or like him, therefore he will fit into the team"). Error. It is important to train the people involved in the evaluation (and especially those who make the final decision). They must be provided with the necessary tools to maintain maximum impartiality in decision-making. Intuition must be considered, of course. But it should not be the basis on which you decide or not to hire.
4. Keep a record of the process. Even today, even companies of a certain volume do not have process management systems. It is essential to document the stages of the process and keep a record, otherwise the task of objectifying is frankly difficult.
5. Continuous improvement. No evaluation system is perfect, but it is important to aim for as much perfection as possible. Once the process is objectified, it is time to analyse through indicators what is working and what is not working well and introduce the appropriate changes. It is also important to ask for feedback from the people evaluated, and thus get continuous feedback.
Getting a selection process is not a quick process, especially in large and complex organizations with large volumes of hiring.
But without a doubt, it is a path that is worth traveling for many reasons, including financial. It should not be forgotten that the average cost (direct and indirect) of a selection error for the company is, according to different studies, between € 40,000 and € 55,000.