Why do people leave their jobs or get fired? From our experience, one of the main reasons that we discovered leads back to mismatched expectations from either party. An employer could have expected a recent hire to possess a greater appetite for risk or a new employee could have expected more freedom and flexibility with the job. Whatever it is, it seems like an easy situation that can be avoided at the beginning. Then why does it still happen?
When you think of a typical interviewing process, it’s easy to see how. Many companies still focus more on what they see on a candidate’s resume and spend too little time on trying to understand their personal values and whether it aligns with what the company is searching for. Knowing their motivations, how they approach problems or whether they are a team player are important indicators. This is why here at Supahands, we advocate hiring candidates based on our company values since we’ve learnt that this results in better retention, happier staff and it’s also cheaper for your company.
Pick values over technical skills
Many companies still put an emphasis on interviewing for the ‘hard skills’ required for a job. What are ‘hard skills’? As the balance careers shares, hard skills are gained through formal education or training programs. So if you were a developer, your ability to code in Python or Ruby on Rails would be the hard skills that you possess.
As companies are eager to find candidates with the hard skills needed to bring their company to the next level, this could result in an oversight of assessing for the right soft skills needed. Contrary to hard skills, the balance careers explains that soft skills focus more on the values, personality traits and communication competencies that are needed to excel at the job.
For illustrative purposes, imagine a scenario where you’ve found a candidate with the right requirements for the job but, contrary to the rest of your team members, he or she does not find it productive to work in teams. If this candidate were to join your team, how would this affect the dynamics of the group? Potentially, the new hire could end up feeling micromanaged while leaving the rest of the team feeling as though this recent recruit isn’t a team player; disputes will soon ensue. When there is a clash in personal values (in this case, teamwork), that is where conflict occurs.
In order to prevent this, a company needs to seek deep within to lay down what values they deem as being important. Even if the company wanted to create a working culture where no one talks to one another and works 9 AM to 10 PM every day, this would identify the values that you’re looking for within your candidates. Instead of team players, you’d be seeking for wholly independent workers. While instead of people who seek work-life balance, you could be hiring those who believe in working hard and tirelessly before reaping the benefits. Once you know your company values, it allows you to hire people who will succeed within your company culture.
The happier the team, the longer they stay
Following through with the previous point, when you are clear on the values you seek within candidates, this results in better hiring and higher retention. How? It’s a matter of aligning expectations.
Take the previous example of the new joiner who likes working independently but is required to work within a group that is all about teamwork. What if employers had instead spent time looking for a candidate who was as passionate about collaborating with others? Instead of setting up an environment for conflicts to happen, the team would be welcoming the new recruit with open arms and the recent hire would also feel like they belong. Giving people a sense of belonging tends to get them to remain in that environment, simply because their expectations were met with reality.
To put it plainly, people aren’t happy when they’re promised something that isn’t true. In this Forbes article, an astonishing 47% of people attribute their quitting to a misalignment of expectations from what they were promised during the interviewing phase. So while recruiters might think that the hardest part is getting a candidate to say yes to joining their company, this figure shows us the importance of hiring right and how it greatly affects employee retention rates.
It’s cheaper for your company
We believe that when you hire based on company values, you don’t only retain employees for longer, you save the company a lot of money too! When you factor in the productivity loss together with the additional costs incurred to hire, interview and train someone new, it can add up to a hefty amount. This Economist article quotes a survey done by Deloitte in 2016 which states that this can total up to $121,000 per departing employee. While this figure can vary across different job positions and seniority, there’s no denying of the various costs that you’ll need to account for when you have an employee leaving. The picture below depicts these potential cost items quite clearly:
Source: Area Temps
So while coming up with your set list of company values will require effort and time, the benefits to the company are immense especially if you hire new joiners based on them. Not only will you have happier employees, but your company will also be able to enjoy higher retention rates and reduced costs that could otherwise be spent on finding someone new!
I hope this article has helped prove the benefits of value-based hiring and that it prompts you to do the same at your company. If you’re curious to find out what the Supahands company values are and what we look for in our new joiners, you can check them out below:
If these values speak to you, we’re always looking to expand the team. Come join us! Apply at jobs.supahands.com.