Preventing Hiring Risks: Effective Candidate Assessment

What Are Hiring Risks?

In today’s competitive job market, recruiting the right people is vital to business growth. However, hiring risks — such as discovering post-hire issues or cultural misfits that lead to early resignations — are common challenges for any organization.

1. Definition and Impact of Hiring Risks

Hiring risk refers to hiring someone who does not meet job expectations or fit the company culture. These risks often arise from poor candidate assessment or insufficient onboarding procedures.

2. Common Consequences of Bad Hires

• Decreased team productivity

• Internal conflict or poor morale

• Wasted time and resources on training

• Negative impact on client relationships and company image

3. Prevalence and Cost of Hiring Mistakes

Studies show that the risk of a bad hire is approximately 14%, and if a new hire resigns within the first three months, the financial loss can exceed VND 187.5 million per person (about $7,500), including hiring, training, and opportunity costs.

Why Do Hiring Mismatches Occur?

1. Misjudging Candidate Competency or Attitude

Today’s candidates often prepare extensively for interviews using online resources, making it harder to assess their actual capabilities based on surface-level responses.

2. Incomplete or Rushed Hiring Processes

When hiring is rushed or lacks structured assessments like background checks or behavioral interviews, companies are more likely to onboard the wrong people.

3. Undefined "Non-Ideal Candidate" Profiles

Most employers define who they want to hire, but few outline who they don’t want. Clear criteria for both can help prevent mismatches.

How to Accurately Assess Candidates and Reduce Hiring Risks

1. Use the Behavioral Interview Framework: STARS

STARS stands for:

• Situation – The context of the event

• Task – Responsibilities or goals

• Action – Specific actions taken

• Result – The outcome

• Self-Appraisal – Personal evaluation of the outcome

This framework helps uncover real past behaviors, not just surface-level answers.

2. Ask Experience-Based Questions

Examples:

• "Tell me about a time you faced a difficult situation at work. How did you handle it?"

• "Describe a conflict with a coworker and how you resolved it."

These questions help validate mindset and actual behaviors.

3. Conduct Background and Reference Checks

• Background checks: Verify employment history and legal issues

• Reference checks: Gather insights from past managers or colleagues on work performance and personality

This is especially important for roles with high risk or customer impact.

4. Assess Mental Readiness and Stress Tolerance

Ask:

• "What situations cause you stress?"

• "How do you manage stress in the workplace?"

• "Do you have any mental or physical health concerns we should be aware of?"

Combine self-reported answers with psychological assessments for better accuracy.

How to Prevent Early Turnover with Effective Onboarding

1. Build a Clear and Measurable OJT Plan

An effective On-the-Job Training (OJT) plan should include:

• Defined goals for each milestone (1 week, 1 month, 3 months)

• Assigned tasks with deadlines

• Success criteria

• Shared access for HR and managers via digital or printed formats

This gives both the new hire and their supervisor a shared roadmap.

2. Use 5W1H for Clear Daily Communication

When giving instructions, ensure:

• Why – Why the task matters

• What – What needs to be done

• Who – Who is involved

• How – How to complete it

• When – Deadlines and check-ins

• Where – Where to execute the task

Clear communication boosts accountability and reduces misunderstandings.

3. How to Give Feedback and Correction

Praise:

• Be specific and timely

• Be genuine

• Praise in public when possible

Correction:

• Provide feedback privately

• Avoid combining compliments with criticism in one sentence

• Use the DESC model:

  • Describe the situation

  • Express the impact

  • Specify a solution

  • Consequence – what will improve if corrected

4. Strengthen Collaboration Between HR and Direct Managers

Onboarding isn’t just HR’s job — direct supervisors must be involved. Regular check-ins between HR and the team lead are essential to track progress and adjust the training plan accordingly.

Real-Life Case Studies: Success and Failure

1. Success: Proactive Risk Management

• A sales candidate had excellent experience but showed inconsistency during the interview. A background check revealed financial disputes with clients at a previous job → Candidate was not hired.

• An admin candidate seemed introverted. After conducting a reference check, the company confirmed the candidate was suitable → Candidate was hired and successfully integrated.

2. Failure: Hasty Hiring and Poor Evaluation

• A technical position was filled urgently, skipping key assessments → The hire had attendance and behavioral issues and was later found to be a repeated troublemaker.

• An IT candidate with many certifications but weak interpersonal skills could not work in a team → Eventually resigned due to job mismatch.

Conclusion

While hiring risks cannot be eliminated entirely, they can be minimized with smart strategies:

• Improve interview methods (e.g., STARS, behavior-based questions)

• Utilize background and reference checks

• Implement structured and collaborative onboarding processes

Hiring the right people isn't just about skills — it’s about long-term fit and alignment with company values. Take the time to assess carefully, onboard strategically, and retain effectively.