Poor Hiring Decisions Impact Your Bottom Line

By Doug Walner President & CEO, Psychological Services, Inc. | October 28, 2008

Evaluating the strengths and weaknesses of job applicants isn't an easy process. Conventional interviews and first impressions can often be misleading. The candidates you may have thought would be strong performers could buckle under pressure or be ill equipped to handle what you may consider the most basic tasks.

So, what can employers do to "hedge their bets" and help ensure that they're hiring the best candidate possible for the job at hand? One answer is by using assessment and evaluation programs to better match candidate capabilities with key job demands. Cognitive, aptitude and other such tests can help measure not only a person's mental ability, creativity and decision-making skills, but also specific personality traits, whether that person shows a willingness to learn and to succeed, and other factors.

Assessments can also help "weed out" poor candidates and help companies from making mistakes that could severely impact their business's bottom line.

Costly Misjudgments

According to a survey by one of the country's leading accounting firms, turnover costs about 1.5 times the salary of the employee who needs to be replaced. That includes severance costs and other costs related to recruitment, training and lost productivity. It's a hard pill for any employer to swallow, particularly in the hotel and hospitality business where having one "bad apple" in a key position can result in untold damage to a hotel's name, reputation and revenue from repeat business.

The annual hotel industry turnover rate at present is a staggering 48.35%, according to the American Hotel and Lodging Association. When one takes that figure, and combines it with the typical cost of replacing an employee, the case for making the right hiring decision becomes even stronger. Bad hires can cost money - lots of it. But there are other downsides, as well.

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.