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Businesses have never done as much hiring as they do today and have never done a worse job of it, says Peter Cappelli of Wharton. Much of the process...

Peter Cappelli, professor at the University of Pennsylvania’s Wharton School of Business and director of its Center for Human Resources, says managers at companies large and small are doing hiring all wrong. A confluence of changes, from the onslaught of online tools to a rise in recruitment outsourcing, have promised more efficiency but actually made us less effective at finding the best candidates. Cappelli says there are better, simpler ways to measure whether someone will be a good employee and advises companies to focus more on internal talent. He’s the author of the HBR article “Your Approach to Hiring is All Wrong.”

HBR IdeaCast• Episode 688

Research shows that formal postings can trump other methods.