5 Rules for Hiring When Great Job Candidates Are Scarce

Hiring in a tight market? Don't rush to fill the role - do this instead.

- BY MAKENA FINGER ZANNINI

When the market is tight and great candidates are scarce, the temptation to “just fill the role” is real. You’ve got work piling up, a team stretched thin and clients or customers waiting.

Unfortunately, rushing a hire almost always costs you more in the long run. From turnover and retraining to the hidden drag on morale, settling for a warm body in the seat is almost always a detour that can set your business back in the end.

Instead, hiring smart in a tough market means slowing down just enough to align on what you actually need, adjusting your strategy to attract the right candidates and building the systems to make the process easier next time.

THE HIDDEN COSTS OF A BAD HIRE

When good candidates are hard to find, many business owners compromise. But that compromise comes with a price tag.

Studies estimate the cost of replacing an employee can run from 50% to 200% of their annual salary when you factor in recruiting (which alone can cost up to 25-50% of a year’s salary), onboarding and training time, and lost productivity. Hiring someone who leaves in six months is essentially lighting a year’s salary on fire.

A poor fit often impacts the rest of your team as well. Low performers or people who aren’t aligned with your values can drag down morale, frustrate your strongest employees and ultimately cause them to leave, too.

FIRST, KNOW WHAT YOU ACTUALLY NEED

One of the most common hiring mistakes is starting the process without real clarity. You know you're overwhelmed, but what specifically do you need this person to do?