According to Career Builder, the cost of a bad hire can be at least 30% of the role’s salary. This figure includes the loss of time, productivity, and hiring resources.
Typical hiring activities include:
- Updating job descriptions
- Advertising job openings
- Reviewing resumes
- Conducting interviews
- Performing background checks
- Negotiating job offers
- Onboarding
- Training
Having to repeat the hiring process due to a bad hire takes additional time and money. These factors decrease the bottom line.
Discover the costs of a bad hire and how you can minimize them.
Increased Supervision
A bad hire requires additional supervision to fulfill their job duties and responsibilities. The manager typically uses this time to motivate the employee, take notes on their activities, and provide constructive feedback. These activities take away time from core activities that generate revenue.
Reduced Collaboration
An unmotivated hire does not effectively collaborate with colleagues and coworkers. Because they are not focused on completing team projects and reaching common goals, their teammates must pick up the slack. These activities lower team cohesion, job satisfaction, and morale.
Lost Productivity
An unproductive hire does not contribute enough to help reach company goals. For instance, the employee might miss deadlines or produce low-quality work that must be redone. As a result, their teammates might have to take on additional tasks and responsibilities that increase stress and burnout, elevating employee turnover.
Higher Recruitment Costs
Recruiting, onboarding, and training a bad hire is expensive. Repeating the recruitment process increases the time and money needed to find the right candidate, reducing the bottom line.
Poor Employer Brand
Firing a bad hire can lead to negative reviews on employer review sites. These reviews lower your rating as an employer and encourage candidates to apply for jobs elsewhere. Damaging your employer brand increases the difficulty of hiring a replacement.
Damaged Company Reputation
A bad hire who produces low-quality work and misses deadlines decreases customer satisfaction. As a result, customers are inclined to write bad company reviews that negatively impact your company’s reputation. Therefore, your company is likely to lose additional customers.
Work with a Recruitment Firm
Minimize the cost of a bad hire by partnering with a recruitment firm that specializes in your industry:
- Talk with a recruiter in-depth about your hiring needs and culture.
- Interview a few qualified, vetted candidates.
- Extend a job offer to the desired candidate.
- Negotiate the job offer with the recruiter acting on the candidate’s behalf.
- Begin onboarding and training your new hire.
- Request a replacement at no additional charge if the new hire is not a good fit.
Partner with Corps Team
Corps Team’s thorough vetting process and expertise in professional recruiting can help your organization avoid the pitfalls of a bad hire. Connect with us to learn more today.