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Top 10 Mistakes Companies Make in the Hiring Process

StrategyDriven Talent Management Article | Top 10 Mistakes Companies Make in the Hiring Process

The hiring process plays a pivotal role in shaping a company’s future. A strategic and well-executed approach leads to strong teams, higher productivity, and a positive work environment. On the other hand, a poorly managed hiring process results in wasted resources, low morale, and high turnover rates. When the wrong people are brought into the organization or the right people aren’t found, it can have lasting negative impacts. Understanding the pitfalls of hiring is crucial to getting it right. Here are some common mistakes companies make during the hiring process and how to avoid them.

1. Failing to Clearly Define Job Roles

Clear job descriptions are essential for attracting the right candidates. A lack of specificity in job postings can lead to mismatched expectations between the employer and the new hire. Without a well-defined role, candidates apply with varied qualifications, leading to a frustrating interview process and the potential for hiring someone who doesn’t fit the position’s actual needs. To avoid this mistake, companies should identify key responsibilities, necessary qualifications, and desired traits for each role. Involving the direct supervisors and team members in defining the job role ensures that the description accurately reflects the position’s daily demands.

2. Not Engaging a Professional Recruitment Agency

Companies sometimes underestimate the value of partnering with recruitment agencies, opting to handle everything in-house. Agencies like the Key Recruitment Group have specialized experience and networks to source candidates quickly and efficiently. They can reach passive candidates who aren’t actively job-hunting but could be ideal matches. Recruitment professionals also help streamline the hiring process, ensuring that only suitable applicants reach the interview stage. By not using a recruitment agency, companies risk wasting time sifting through a large volume of unsuitable resumes or overlooking top candidates altogether.

3. Overlooking Internal Talent

Current employees are a valuable source of potential talent that companies often overlook. Internal hires already understand the company culture and have established relationships within the organization. Promoting or shifting employees into new roles provides them with growth opportunities and keeps them engaged. Overlooking internal candidates for external hires can create resentment and reduce morale. By conducting internal job postings and encouraging current staff to apply for new roles, companies can tap into a motivated talent pool that is often more prepared to hit the ground running.

4. Prioritizing Speed Over Quality

When a position becomes vacant, there’s pressure to fill it quickly, but rushing to hire can lead to poor results. Prioritizing speed often results in inadequate candidate assessments, leading to mismatched hires and costly turnover. An efficient yet thorough evaluation process should balance speed with the quality of the hire. Companies should take the time to vet applicants through screening calls, structured interviews, and practical assessments. This ensures that the selected candidate possesses the right skills and aligns well with the team.

5. Ignoring Cultural Fit

Cultural fit is a crucial component of employee engagement and retention. Employees who feel aligned with their organization’s values and working style tend to be more productive and satisfied. During the hiring process, it’s important to assess candidates for their compatibility with the company’s culture. This can be done through behavioral interview questions, role-playing scenarios, and team-based activities. While skills and experience are important, a candidate’s ability to thrive in the company’s environment will have a long-term impact on their success.

6. Inadequate Interview Process

A poorly structured interview process can lead to inconsistent results and missed opportunities. Common pitfalls include untrained interviewers, a lack of structured questions, or interviews that are too casual or too rigid. Candidates should be assessed through a combination of standardized questions and role-specific inquiries. Each interviewer must be trained to evaluate responses fairly and consistently. Creating clear interview guidelines ensures that all candidates are given the same chance to showcase their abilities while making it easier to compare applicants objectively.

7. Neglecting Employer Branding

In today’s competitive job market, companies need to present a strong employer brand to attract top talent. If your organization has a weak online presence or negative reviews, qualified candidates may look elsewhere. An appealing career page, positive employee testimonials, and active engagement on professional networks can significantly boost your company’s reputation. Job seekers increasingly rely on these sources to assess whether a company is a good fit for their goals and values. Neglecting employer branding can leave your organization overlooked by quality applicants. To strengthen your brand, actively manage your online reputation, showcase company culture, and celebrate employee achievements.

8. Overemphasizing Experience Over Potential

Focusing too much on experience can mean missing out on candidates who may lack direct experience but show high potential. Companies sometimes overlook candidates who come from unconventional backgrounds or industries but bring valuable transferable skills. Hiring managers should be open to diverse experiences and consider how candidates can grow within the organization. Potential can be gauged through behavioral interviews, practical assessments, and exploring learning agility. A candidate who demonstrates strong growth potential can often surpass experienced hires in long-term contributions.

9. Providing Poor Candidate Experience

A negative candidate experience can deter even the most enthusiastic applicants. Long delays, inconsistent communication, or impersonal interviews can alienate potential hires. Candidates expect a transparent, respectful process where they receive updates at each stage and have opportunities to ask questions. Companies should ensure timely communication with candidates, even when delivering rejections. Providing interview feedback can also help rejected candidates improve their approach for future opportunities. Creating a positive candidate experience ensures that even unsuccessful applicants leave with a favorable impression of your company.

10. Failing to Check References

Reference checks are essential for verifying candidates’ qualifications, work history, and interpersonal skills. However, some companies skip this step to expedite the hiring process. This can lead to unpleasant surprises after hiring if a candidate’s claims don’t match reality. Conducting thorough reference checks with previous supervisors and colleagues provides valuable insights into how candidates perform on the job. Prepare consistent questions that explore areas like teamwork, reliability, and technical skills. Verifying past employment helps reduce the risk of making costly hiring mistakes.

Building a Better Hiring Process

Hiring the right candidates is essential for building strong teams that contribute to a company’s long-term success. By understanding the common mistakes in recruitment, organizations can refine their processes to ensure a more effective and inclusive approach. From crafting clear job descriptions and utilizing recruitment agencies to improving interview practices and checking references, each step in the process requires attention. Avoiding these mistakes will help companies save time, reduce turnover, and enhance their reputation as employers of choice. Investing in a better hiring process ultimately leads to stronger teams and a healthier workplace culture.

Exploring the Role of Chatbots in Banking

Chatbots in banking have quite a few uses. While the first thing that probably comes to your mind is automated customer support, they might also be used as the basis for Virtual Assistants – gen-AI-powered systems that help your customer service agents. In this article, we will discuss their role in more detail, so read on to find out more.

What Are Chatbots in Banking?

Chatbots are computer programs using natural language processing (NLP) to provide human-like interactions. They are based on large language models (LLMs), typically trained through machine learning (ML) using the vast amounts of data stored by banks.

Such chatbots not only learn how to adjust the tone and style of messages but also draw from the bank’s regulations and documents to provide the most accurate responses. They are available 24/7, making them a great option for customers who wish to have access to customer support at all times.

Two Types of Chatbots in Banking

Chatbots may be used in banking in two ways: direct or indirect. Let’s examine these two in more detail.

Regular Chatbots (Direct)

Regular chatbots interact directly with the customers. They provide them with information while the clients are aware that they are speaking/messaging a robot.

Virtual Assistants (Indirect)

In theory, virtual assistants aren’t chatbots, but in practice, they are. These systems help customer service agents respond to tickets by generating responses and providing sources on which they base their messages. As such, they can accelerate the response time, letting banks increase the productivity of their customer service teams.

In simple words, we could say that Virtual Assistants are chatbots in banking that require a human to confirm the message. They might have additional functionalities, but at their core, they are just semi-automated chatbots; that’s why we classify them as such.

How Do Chatbots Help in Banking?

After explaining chatbots’ nature in banking, let’s look at their benefits. After all, this is the best way to present their impact on the financial industry.

Accessibility

Since chatbots can operate 24/7, they make customer support much more accessible, even for those customers who have to contact customer service after office hours.

Convenience

A chatbot’s capacity is much larger than that of a customer service agent. This means that even if the demand is high at a given moment, they will be able to service tens if not hundreds of customers at once. As a result, your clients don’t have to wait in lines on phone calls or chat.

Cost Reduction

Chatbots are automated, and with automation come reduced operating costs. The more tickets are solved by bots, the fewer customer service agents you need, hence reducing the amount of money you pay each month as salaries.

The Takeaway

Chatbots have become a formidable force in banking. They can drastically reduce the costs of customer service, while improving the overall customer experience at the same time. Therefore, if you are not using them in your organization, consider their implementation – it will pay off in just a couple of months.

ASO App Optimization: Features and Benefits

StrategyDriven Online Marketing and Website Development Article | ASO App Optimization: Features and Benefits

App Store Optimization (ASO) is an adaptation of mobile apps for marketplaces. With ASO optimization, you can increase the visibility and attractiveness of your product to your target audience and potential customers. The result will be a significant increase in app downloads, more users, a growing loyal audience, and increased revenue.

ASO optimization consists of many different tools. The task of a specialist is to select the optimal promotion options and skillfully combine them to achieve the planned result. You can only cope with such a task by having the necessary knowledge and experience. 

Therefore, the right solution will be cooperating with appropriate professionals. The market leader is RadaSO Agency. It will study the task in detail, select the right tools, and develop a unique ASO strategy, with the help of which your mobile application will rise significantly in the search engine of marketplaces and will be more recognizable.

Main Stages of ASO

The set of works on ASO promotion consists of several stages:

  • Audit: a comprehensive study of the mobile app page in the store is conducted, and competitors are analyzed;
  • Text Optimization: a competent and transparent description using keywords and phrases is created;
  • Graphic Optimization: appropriate logos, icons, and visuals are selected, and screenshots and videos are added to the marketplace.

ASO is an essential tool for mobile developers. Competition in marketplaces is high, and proper optimization helps your application stand out among many similar programs.

What You Get After ASO Optimization

Promotion contributes to the active and accelerated advancements of new products and those that have already gathered their audience. Proper ASO provides the following results:

  • The mobile app has been promoted to the top of marketplace searches, and its visibility has grown significantly;
  • The product is given to target users who are interested in the services offered and will use them regularly;
  • Optimization increases the relevance and attractiveness of the product for the audience, and the number of previous downloads causes trust in the potential user;
  • The number of downloads increases, due to which your profit from the provided product will constantly boost;
  • ASO optimization provides conditionally free organic downloads, so at a minimal cost, you get high results.

It is important to choose or create a suitable business model. In such a case, the first step is to study the mobile application and its goals. If you offer a game app, you can use ASO to make it more widespread. The owner will profit from paid subscriptions and the purchase of premium accounts.

The application may not be the primary tool but it is a channel for attracting the target audience. Based on the peculiarities of the program and the functions it will perform, the optimal business model for subsequent promotion is developed.

Main Benefits of ASO Promotion

App Store Optimization is an effective way to promote mobile apps in marketplaces. The popularity of ASO appeared due to the following benefits:

  • Increased Visibility: search-optimized apps are found faster in marketplaces (high-ranking positions contribute to more attention from the target audience and increase the number of downloads);
  • Efficient Use of Resources: the main task is to choose the proper optimization tools to make the program more attractive for users and increase the download probability;
  • Increased Conversion: optimizing the title, icon, description, and other elements of a mobile app makes it more attractive to users;
  • Increase In Quality Downloads: the program is searched by key queries indicating a person’s interest and the application usage is actively increasing, which contributes to revenue growth;
  • Improving Reputation and Credibility: positive reviews, high ratings, good visibility, and a constantly growing number of downloads give users an impression of the application’s reliability and quality;
  • Maintaining Competitiveness: regular ASO updates help the program stay in its position and attract current and potential users;
  • Analytics and Optimization: ASO helps developers analyze the effectiveness of specific changes and optimize the strategy to achieve the set objectives and planned results.

ASO is an essential tool for the successful marketing of any mobile app. Proper optimization helps expand the target audience and the number of downloads. However, you can only do this with the help of experts. Therefore, it is essential to select experienced professionals who understand the intricacies of the process and realize the plan.

5 Ways Smart Startup Founders Strategically Manage Operating Capital

StrategyDriven Managing Your Finances Article | 5 Ways Smart Startup Founders Strategically Manage Operating Capital

According to the Bureau of Labor Statistics, 20% of businesses fail in the first two years. By 15 years in, only 25% of new businesses survive.

You may feel like things are stacked against your startup, but with the right strategy, you can beat out the odds and be one of the few who remain 15 years down the road.

And with financing being one of the primary reasons startups go under, the right strategy needs to involve improving upon your operating capital.

What Is Operating Capital?

Sometimes called “working capital,” operating capital is the sum of a business’s current assets minus its current liabilities. Assets include cash, accounts receivable, and inventory, while liabilities include accounts payable, employee wages, taxes, and interest accrued.

Working capital is necessary to fund a company’s operations and pay for expenses as they arise. When working capital falls into the negative, debt can build quickly. Startups can find themselves in the red long enough that they simply cannot financially recover.

After all, the most common reason startups fail is because they run out of money.

5 Tips to Strategically Manage Operating Capital

Tired of living on the brink? If it’s time to get your financial house in order, here’s how to get started.

1. Automate Your Accounting

As a startup, you always need to be thinking of the future.

Sure, your accounts payable team may be able to operate manually now, but as you grow, automation can improve their processes and give them back valuable time. When you automate your accounts payable, manual tasks like processing, validating, approving, and paying invoices become easier.

Automating accounts payable also improves invoicing processes and data, which in turn improves transparency in the money flowing in and out of your company. That transparency can help you maintain a better understanding of your current working capital and reduce the risk of human error hampering your operating capital expectations.

2. Look for Opportunities to Reduce Taxable Income

Although tax rates vary by state, the average small, growing business can expect to pay nearly 20% of its annual gross income in taxes. Minimizing your taxable income can help you reduce costs and keep your operating capital positive.

One technique is to capitalize your software development costs. When you capitalize your software costs, you reduce your taxable income by spreading out the cost over the period in which you can expect to generate revenue from the asset.

3. Improve Your Cash Flow Forecasting

Cash flow is a big part of maintaining your operating capital, which is why cash flow forecasting is a helpful technique to ensure you can prepare for the future. Cash flow forecasting relies on data collected and analyzed in regard to the inflow and outflow of cash in your company.

Cash flow forecasting software can automate this process by analyzing data from your finances to provide you with a peek into your future at the current rate of your income and expenses.

4. Manage Your Inventory

 If your startup sells physical products, inventory may be one of the biggest stressors on your operating capital.

It’s easy to fall into a pattern of holding onto too much inventory. After all, when you’re just getting started, you don’t want to run out of inventory, especially if you suddenly start receiving more attention from potential customers than ever.

Track and analyze inventory data, regularly audit your inventory for what’s selling and what isn’t, and utilize inventory management tools that can use your data to enable you to forecast how much inventory you’ll need. These tactics can help you keep your inventory from eating up your operating capital.

5. Stay On Top of Receivables

Another key part of your operating capital in addition to accounts payable is of course accounts receivable.

However, this part of the equation can be somewhat nebulous. Your accounts receivable can help tell you how much money you expect to have at a particular time. But sometimes expectations aren’t met.

Staying on top of accounts receivable ensures that you’re getting paid when you’re supposed to. So while you automate your accounts payable, it may also be a good idea to invest in accounts receivable automation, as well.

Especially as your business grows, manually tracking down money owed can be a time-consuming process and filled with the potential for human error to cause someone to miss a payment that the company should have received. Automating this process helps businesses collect payment on time and boost operating capital.

Keep Working on Your Working Capital

Your operating or working capital is a relatively simple formula—your assets minus your liabilities. But when you get into the details, you’ll find that there are a lot of components to your operating capital and many steps you can take to give that capital a boost.

Automation, including automating your accounts payable and accounts receivable, can increase transparency and help you locate more places to improve the value of your assets. Forecasting your inventory needs and cash flow can enable you to prepare for future costs. Reducing taxable income can also give you a boost down the road when taxes are due.

Don’t be another statistic. Create the right strategy to transform operating capital into a tool that helps your business stand the test of time.


About the Author

Jacqueline Gualtieri is a writer and editor whose work has appeared in The Huffington Post, Insider, and The Slowdown. In addition to writing, she works as a digital media consultant and content marketer, driving online traffic for her clients. She’s always looking to advance her skillset and believes strongly in the early adoption of new technology.

The Performance Benefits of a Portfolio Review

StrategyDriven Strategic Analysis Article | The Performance Benefits of a Portfolio Review

The product and service portfolio is the aspect of business planning with the least certainty. Adept portfolio management is paramount for sustained growth and competitiveness, especially in today’s difficult and volatile economic environment. Fortunately for those organizations with an effective Integrated Business Planning (IBP) process, the Portfolio Review provides a mechanism to navigate the complexities of product lifecycles, market dynamics, and resource allocation to meet the organization’s strategic objectives.

Foundation of Portfolio Review

The Portfolio Review (PR) is the first step in the monthly IBP cycle. It’s a natural connection between business strategy and the plans for the products and services brought to market to achieve that strategy over time. Its mandate extends beyond mere oversight — it exists to formulate, evaluate, and continually update a robust plan for optimizing portfolio health.

Valid and Achievable Plans

The purpose of the PR can be defined as reaching consensus on a valid and achievable portfolio plan and resulting financials that achieve the growth ambition of the business. The keywords are valid and achievable. If the plan doesn’t represent “truth as we know it,” then the plan isn’t valid, and if the resources aren’t available to deliver the plan, the plan isn’t achievable. If either of these conditions exist, the plan will not be trusted.

Therefore, the monthly PR review’s updates to the portfolio plan and its underlying assumptions focus on how changes to the plan impact what will be available to sell, what resources are needed to execute the portfolio plan, and how revenue projections may need to be altered. It’s a matter of balancing work, time, and resources in the most effective way to maintain alignment with the business’s strategic objectives.

Performance Measurement and Management Perspective

Central to the PR process is the scrutiny of performance measures. History is often a leading indicator of future performance, so actual performance to date should be used as a reference when validating the credibility of the forward plans. If actual performance is below target, then the validity of the forward-looking plans should be questioned, the supporting assumptions vetted, the root causes of variances understood, and corrective action plans developed.

These are the key questions to ask in the review meeting:

  • Are the PR performance measures improving?
  • Has bias in the PR performance measures been eliminated?
  • What are the planned corrective actions that will enable improved future performance versus past performance?
  • Are assumptions behind the forward-looking PMR still valid and credible?

The answers to these questions direct any corrective actions.

Preparing and Conducting the PR

An effective Portfolio Review demands meticulous preparation. Before the meeting, changes in the last month must be analyzed and documented. In this way, the focus can be on the actions required to address performance gaps.

The objective is to update the plan where required. Then, the results and outputs of the project portfolio (new products, value engineering, reformulations, renovations, etc.) will remain on track to achieve strategic objectives over the next two-to-three years or whatever the appropriate horizon is for the industry.

Crucially, as discussed above, in addition to reviewing sufficiency, it’s also vital the information shared in the review demonstrates that the portfolio plan is valid (represents the truth as we know it) and achievable (properly resourced). There must be a high degree of confidence that the portfolio plan can be delivered as planned.

Managing Change and Prioritization

Change is inevitable, and adept management is pivotal. Understanding cycle-over-cycle variances, addressing performance gaps, and assessing the realism of the underpinning assumptions are crucial steps in the portfolio management journey. Managing prioritization effectively ensures optimal resource allocation — people, capital, physical assets, etc. — to ensure the business stays on track to meet its targets.

In an era characterized by volatility and uncertainty, the IBP Portfolio Review is a fundamental contributor to stability and realizing the strategic intent of the business. By aligning portfolio activities with organizational objectives, project prioritization, and optimal resource allocation, the PR helps organizations achieve their corporate goals and propel them towards sustained growth, even in the most challenging market conditions.


About the Authors

Tim Reiher and Donald McNaughton have over 50 years of hands-on experience implementing effective IBP and Demand Management improvements for businesses in CPG, chemical, and pharmaceutical industries, to name a few. As business advisors with Oliver Wight Americas, Tim and Donald have authored many white papers, presented webinars, and are course instructors of best-practice business improvement processes. Learn more at oliverwight-americas.com.