Hiring Project Managers? These Mistakes Will Cost You

Hiring a project manager (PM) is one of the most critical decisions an organization can make, yet many companies rush the process and end up paying the price. Project managers play a pivotal role in keeping initiatives on track, ensuring deadlines are met, and driving projects to success. However, Project Management Report analyzed 2023 industry surveys and found only 37% of projects are completed within their original budget, and for larger companies—those with over $1 billion in revenue—this figure drops to just 33%. Even for well-resourced projects, expertise, not just money, is the key to effective project management.

Here are some critical mistakes you need to avoid when hiring a project manager:

1. Rushing the Hiring Process

It can be tempting to rush through the hiring process, especially when deadlines loom. Beware: hiring a project manager too quickly can lead to disastrous outcomes, including poor performance and turnover. When organizations hurry to fill a role, they often fail to understand the unique requirements of their projects and how the new hire will integrate into the team.

Up to 20% of staff turnover occurs within the first 45 days of employment according to Harvard Business Review, which will land you right back at square one. Take the time to define what you need from a PM, including the specific goals and challenges of the projects they’ll manage. This can prevent costly missteps and help ensure long-term success. Expert recruiters and staffing agencies can come in handy if you’re pressed for time but still want a thorough hiring process.

2. Not Assessing Project-Specific Experience

Projects vary widely -from system migrations to launching brand-new products. A PM with experience in launching MVPs (minimum viable products) may not be the best fit for a multi-year migration project. Even more so, if your industry is highly regulated—like healthcare or finance—you’ll need someone familiar with navigating compliance and risk management.

Escrow London analyzed the 2021 Standish Group’s Chaos Report and found that only 29% of IT projects were completed successfully on time and at or under budget. If you want to be part of that 29%, hiring a PM who can navigate challenges specific to your project is a great start. 

3. Overlooking Methodology Expertise

Organizations are using a wide variety of project management methodologies these days, and it’s unlikely that any given PM is an expert in all of them. 

According to VersionOne’s State of Agile Report:

• 5% of teams use Kanban 
• 56% of teams use Scrum
• 14% of teams use a hybrid of methodologies 
• 8% of teams use ScrumBan
• 6% use Scrum/XP Hybrid

Whether it’s Agile, Waterfall, or a hybrid approach, hiring a PM who isn’t well-versed in the required methodology can cause delays and mismatched expectations. For instance, if your company is fast-paced and relies on Agile practices, a PM experienced only in Waterfall may struggle to adapt.

4. Not Properly Assessing Their Skills

Assessing a project manager’s skills isn’t always straightforward, especially if you’ve never been a PM yourself. It’s easy to be impressed by someone’s resume without recognizing red flags. Failing to thoroughly evaluate these core skills can lead to hiring someone who may struggle when faced with real-world challenges.

According to Project Management Institute’s 2023 Pulse of the Profession Report, on average, 5.2% of the entire project budget is wasted on poor project management performance. For companies that don’t emphasize the right skills, this jumps to almost 9%.

Avoid this expensive mistake by using practical skill assessments, reference checks, and behavioral interview techniques. Have candidates walk through past project challenges and explain how they navigated them. Consider involving a third-party expert to help evaluate a candidate’s technical PM skills, especially if you don’t have a deep background in project management yourself.5. Ignoring Project Scale

5. Ignoring Project Scale

The size and scope of your projects should heavily influence the type of project manager you hire. The size of your project influences project metrics, project risk mitigation, and impact on the broader organization; it needs to influence your PM hire as well. Furthermore, working cross-functionally at different-sized organizations requires different personalities and skill sets.

Failing to consider this can lead to hiring someone ill-equipped to handle the demands of your project, whether it’s because the project is too big or too small for their experience level.

6. Underutilizing or Misutilizing Your New PM

If your organization doesn’t clearly define the PM’s role before the hiring process begins, you risk underutilizing their skills or failing to set them up for success, leading to inefficiencies and frustration.

Harvard Business Review found that the cost of losing a skilled technical employee can range from 100% to 150% of their salary, depending on their role. 

How will your new PM fit into your organization? Where will they add value? When assessing candidates, can you connect their experience to what your organization needs? Asking these questions will give your new PM the best chance of success.In Conclusion

In Conclusion

Project Management hires can make or break your project, and hiring the right one requires a great deal of care. Putting in the effort to thoroughly assess candidates’ skills upfront can save you from unexpected costs later. 

Want expert guidance during the hiring process? Project OnDemand can help you avoid mistakes and get your project firing on all cylinders.