LAKE LAS VEGAS, NEV. — Want to lose $100,000 on your next new hire? Headhunter Dennis Gros can tell you how — or rather, ways to avoid that.
Gros said the amount spent on recruiting an executive, selecting, hiring — and then maybe firing later if it doesn't work out — can top $100,000.
Gros, president of Gros Executive Recruiters in Franklin, Tenn., illustrated his point with several case studies at the Plastics News Executive Forum.
His main message: Gear the search to finding real people. “Make your best comparison on real people who actually exist,” he said.
He said companies often set the compensation package based on their own budget.
“But you also have to be able to deal with a real market” for employees, he said. “A market price is a market price. And we can't individually affect that.”
Gros also said companies can call off a search prematurely, thinking they have found the perfect candidate. But the company still should fully vet the candidate and see if he or she really wants the job or has a mismatch on experience, or won't be happy with the position or the pay.
“Be careful when you fall in love with a candidate, because lust feels like love until it's time to make a sacrifice,” Gros said.
In one case, the company developed a highly detailed job description. Candidates were screened by the human resources department, then they got assessed by an industrial psychologist. They answered personal questions via computer. The top executive said: “Then, and only then, does a person get to talk to me, several times, over a long duration, because we have to make sure we get the exact person.”
And what happened? The new hire left after a short time. Gros said the process was too tight and left out human intuition. Also, it froze out other potential candidates.
Sometimes companies wait too long.
“Let's not get lulled into the belief that the right person is going to decide to wait for me until I make them an offer,” Gros said.
In other example, he said companies often base the compensation on the budget.
“But you also have to be able to deal with a real market” for employees, he said. “A market price is a market price. And we can't individually affect that.”
Gros also said companies can call off a search prematurely, thinking they have found the perfect candidate. But you still need to fully vet the person to find out if he or she really wants the job or has a mismatch on experience, or won't be happy with the position or the pay. Or you can stop the search, then end of facing lengthy negotiations with the new hire.
“Be careful when you fall in love with a candidate, because lust feels like love until it's time to make a sacrifice,” Gros said.
