Abstract

ABSTRACT Successful business strategy depends heavily on an effective organization composed of highly skilled employees who are committed and motivated to achieve the mission and vision of the organization. Although many organizations claim to hire the best employees, and may even make an attempt to, they might not actually do so. Kismet, a company that provides strategic hiring services cites a Bureau of Labor Statistics report indicating that 66 percent of employees in U.S. companies as unengaged (in other words, not working toward company goals and objectives)or disengaged, meaning those employees actively work against company goals and objectives (www.kismet-consulting.com/services/hire.html). Despite many attempts to calculate the cost of bad hiring decisions, estimates vary considerably and range as high as ten times the annual salary of the employee. Tony Hsieh, CEO of Zappos, believes that bad hiring decisions cost his company $100 million, in part due to the domino effect of bad hires (http://www.businessinsider.com). In this paper, commonly used hiring techniques will be reviewed and recommendations offered to improve organizational hiring effectiveness and financial performance.