Can you afford to pay 13 times more in current salaries?

Peter Drucker once said, “The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are very good at it.”

Most organizations are terrible, if not inconsistent, at hiring. This is not a good thing at all since talent matters more than any other resource in a nonprofit. Numerous studies report that the most successful companies are those run by leaders who understand that people are the most important part of the business equation. Despite these reports, CEOs still do not prioritize the hiring process and end up losing precious time and money. Losses in recruiting, training, and productivity can be staggering—up to 13 times that person’s salary and more for managerial or revenue-generating positions, says Erling.

Dan Erling is the author of our new Page to Practice™ feature this month at CausePlanet: Match: A Systematic Sane Process for Hiring the Right Person Every Time.

“Most organizations will tell you that having the right people on the team is the key to success. Very few organizations go beyond that rhetoric. When it comes to execution, they lack the drive to make hiring great people a top priority,” says Erling.

Furthermore, when I asked Dan Erling about the important but seemingly rare evaluation of a job candidate’s competencies versus skills, he had this to say:

“The difference between competencies and skills is vast. Competencies tell us about the internal makeup of the candidate we are considering for a role in our company. Examples of competencies include ‘independence, energy, passion and intelligence.’ Skills are trainable and don’t tell us anything about the way a person will fit within a company. Examples of skills include, ‘Excel mastery, the ability to speak Spanish, working knowledge of nonprofits and a CPA accreditation.’

So, the reason that making the distinction between competencies and skills is so rare is because there is difficult and deliberate work that must go on to figure out what competencies best fit within an organization. This is time-consuming and difficult. But the good news is that most organizations don’t want to be bothered with it. Those that are willing to take the plunge are far more likely to be successful in their hires and therefore infinitely more competitive.”

Human capital is the most important investment you can make in your organization, according to Erling. He has developed and repeatedly proven that his MATCH model, if used from start to finish, will ensure you hire the best fit every time.

The MATCH system covers the entire lifecycle of the hiring process, including: using powerful strategies to craft job descriptions that precisely fit your nonprofit’s needs; building teams and departments that align with your mission; investing the necessary time and energy in recruiting, interviewing and researching the right candidates; bringing new hires on board, monitoring their performance and ensuring the hires are maximizing their performance; and retaining top talent for long-term hiring ROI.

Evaluate the current health of your hiring processes by answering some of Erling’s questions below:

1. What has been your company’s hiring success rate over the past year?

2. What has been your company’s retention rate over the past three years?

3. What percentage of your employees has a working job description?

4. What percentage of your employees is in the correct role in terms of being challenged and fairly compensated?

5. What percentage of your staff matches the culture of your organization?

6. What percentage of your staff has a competency profile that augments the organizational dynamic?

7. How much do your current employees augment your organizational mission?

Find out what the next steps are based on your answer to these questions. Learn more about our new Page to Practice book summary of Match, or visit Erling’s site at www.danerling.com for more insights from the author, details about the MATCH process, and his consulting services.

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