Making the hiring decision and the employment offer

Hiring decisions are often clouded by biases, gut feelings, or general likeability. Statements like “I knew when they walked in” or “We just clicked during the interview” highlight a flawed approach. Such decisions can result in poor hires, with studies showing that 50% of hiring managers regret their choices within a year.

This section explores how to make hiring decisions based on data rather than instincts, ensuring a higher success rate and alignment with role requirements.

Why Bias in Hiring is Problematic

Bias and subjective impressions are common pitfalls in hiring. They often lead to:  

- Rejection of qualified candidates for irrelevant reasons;
- Favoritism based on charisma or perceived fit rather than competencies;
- Stronger personalities dominating discussions and influencing decisions unfairly.

Watch the video below to see how bias affects hiring decisions.  

Reflection: In the video, candidates are discussed in a way that highlights bias and irrelevant assumptions. For example:  

- Miriam is considered too immature by one person, despite her energy and passion;
- Daniela is dismissed because she seems "unsettling" to the CEO;

- Hendrick is rejected initially due to a perceived lack of passion.  

These evaluations are based on subjective opinions rather than role-specific data, showcasing why this approach is flawed.video

"Feel and Like" Decisions

After watching the first video, consider this: Many companies rely on gut feelings or personal preferences when making hiring decisions. This approach often leads to unproductive discussions dominated by the strongest personalities in the room, where candidates are dismissed for irrelevant reasons.

Watch this short video to understand the impact of "feel and like" decisions and why they’re flawed.

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⁠Reflection: This video highlights a common problem: hiring decisions made based on instinct rather than objective evaluation. Such methods often derail the process and result in poor hires.

⁠The Power of Using a Scorecard

To counteract bias, adopt a scorecard-based framework for evaluating candidates.  

What is a Scorecard?
A scorecard is a structured set of criteria against which all candidates are evaluated. Evaluators score each candidate based on these predefined metrics, and the aggregated results highlight the best fit.  

Benefits of a Scorecard Approach:

- Consistency: All candidates are assessed using the same criteria;
- Objectivity: Focus remains on measurable attributes rather than subjective impressions;
- Data-Driven Decisions: Clear comparisons between candidates help eliminate bias.  

Using Data for Hiring Decisions

The next video illustrates how scorecards and data-based evaluation can transform hiring decisions. 

In this video, the stakeholders analyse the candidates using Wisnio’s scorecard system. While initial opinions favor Miriam for her energy, the data shows Hendrick is a better match due to his experience and maturity. 

Best Practices for Data-Based Hiring Decisions  

1. Define Success Criteria
   Before starting evaluations, agree on the critical competencies, behaviors, and outcomes required for the role.  
   
   
2. Ensure All Stakeholders Contribute
   Gather evaluations from everyone involved in the hiring process, but rely on aggregated data rather than individual opinions.  
   
   
3. Analyse the Data Holistically
   Compare candidates against the scorecard results to identify who aligns most closely with the role’s requirements.  
   
   
4. Make the Final Decision Strategically
   While data informs the decision, the ultimate responsibility should rest with the CEO or hiring leader to ensure alignment with strategic goals.

"Despite many people being involved in the process, the ultimate decision should be made solo. Only the CEO has comprehensive knowledge of the criteria, the rationale for the criteria, all of the feedback from interviewers and references, and the relative importance of the various stakeholders. Consensus decisions about executives almost always sway the process away from strength and toward lack of weakness. It’s a lonely job, but somebody has to do it."
Ben Horowitz, The Hard Thing About Hard Things

Who Would You Choose?

At this point, you’ve seen the strengths and weaknesses of both Miriam and Hendrick. If you were the CEO, who would you choose? Watch the following video to see the decision and the reasoning behind it.

The Decision: ⁠The CEO ultimately selects Hendrick for the role, citing his competencies and shared values as the key reasons. While Hendrick has weaknesses, his ability to get the work done and provide honest feedback outweighed other considerations. Breaking the decision-making process into pieces allowed for greater clarity and confidence in the choice.

Data-driven Decision-Making with Wisnio  

Wisnio provides tools to simplify and improve hiring decisions:  

- Success Criteria and Scorecards: Set up success criteria tailored to the role and evaluate candidates against them. Wisnio’s scorecards ensure that all candidates are evaluated fairly.

- Candidate Comparisons: Wisnio automatically compiles a comparison overview of all candidates, highlighting their strengths and fit with the team.

- Collaborative Evaluations: Allow all stakeholders to add their evaluations, ensuring comprehensive input while keeping the final decision data-driven.

Additional Reading
- How to make better hiring decisions - ARTICLE

⁠The Employment Offer  

Once the hiring decision is made, extending a clear and compelling offer is the final step.  

Tips for Crafting the Employment Offer:

1. Clarify Role Expectations: Clearly outline responsibilities, objectives, and how success will be measured.
   
   
2. Highlight Benefits: Include details about compensation, perks, and growth opportunities  to make the offer attractive.  
   
   
3. Provide Room for Negotiation: Be open to discussing terms, ensuring alignment on expectations before onboarding.  

Reflection and Quiz

Self-check quiz

Have you heard the saying “Hire fast, fire fast”? Is this the best way to approach hiring decisions?

1. Yes, you should go by "Hire fast, fire fast"!
2. No, this is not the way.

With the hiring decision made and the offer extended, it’s time to focus on onboarding the new hire for long-term success. Let’s explore how to set your new executive up for success in their first 100 days.