The cost of a bad hire is shockingly high. And we don’t just mean financially. Hiring the wrong employee can have a multitude of negative effects on your business.
A bad hire can be a detrimental mistake to a company’s bottom line. Not only does hiring the wrong employee cost time and money, it can be a major setback in corporate culture, productivity, momentum and maintaining your overall credibility within your industry.
Unfortunately, this costly mistake is happening over and over again, as more than 74% of employers admit to having lost money by hiring the wrong employee.
The first step to avoiding a bad hire, is knowing the risks and being able to recognize the signs at a recruitment level, especially in a competitive hiring market.
With the right tools in place and the right team on your side, you don’t have to be a victim to a bad hire.
The Hard Costs of a Bad Hire
Hiring the wrong candidate can have a major impact on your company’s budget and bottom line. Beyond salary, there are additional costs incurred in the hiring process such as recruitment expenses, on-boarding costs, and outfitting your new employee with a uniform not to mention proper training. The fact is, the risk behind hiring the wrong person is far greater than the minor cost behind utilizing a professional service to find the right person for you and demolish the risk of a bad hire
Studies estimate the hard cost of a bad hire to be between 1.5 to 3.5 times their annual salary. This of course, only takes into consideration the numbers that are tracked and measurable. For instance, if your bad hire has a salary of $50,000 a year, the real cost to your organization is more like $75,000-$175,000.
That’s why selecting the right candidate the first time, is crucial to protecting your hiring budget. Partnering with a qualified staffing firm can ensure you don’t run the risk of over-spending on an unqualified employee. Our recruitment professionals spend each and every hour of their day investing in the hiring process of our trusted customers. Not only do we care about putting someone in the position, but we care about putting the RIGHT person in the position. We want to find a good job for our candidates, and we want to find a good candidate for our customers. Working with a staffing agency who cares can be the best investment you can make in your business.
Loss of Productivity
Along with the financial costs of hiring the wrong person, your organization can also greatly suffer in productivity. The cost of an unproductive employee can take a toll on even the strongest workforces and lead to loss of efficiency amongst your entire team.
On average, it takes about 52 days to fill a position and another 5-6 months for a new hire to reach their full level of productivity. That’s the better part of a year wasted on an unproductive employee who wasn’t the right fit for their role in the first place.
Also, when a disengaged employee isn’t reaching their full potential, it ends up putting extra pressure on your good employees. Having to pick up the slack from a bad hire who’s not pulling their weight, will eventually cause your key players to burn out.
Taking time away from your business to focus on a bad hire is a completely ineffective use of your time. Employee productivity is essential to running any business, and that productivity begins with you. Our staffing firm takes the time to go through the entire hiring process until only the best of the best remain, leaving you the time you desperately need to run your business.
Chaotic Corporate Culture
A bad hire can be a major setback in corporate culture and growth. Not only does hiring the wrong employee cost a company time and money, it can also effect overall company morale.
During a time of so much uncertainty, having the right employee in place can add great value to your workflow, and create a sense of unity among your employees. When the right employees are all in alignment with your company culture, the entire system runs smoother.
Having one bad apple in the bunch can throw off your entire team and even run the risk of loosing key employees in the process. Which is a cost your business can NOT afford, especially in a competitive hiring market.
Having low performing employees who are demonstrating bad habits, can spread like a California wild fire. Even your most dedicated employee can start to emulate their less committed co-worker over time. Not to mention the time spent having to reset the behaviours of existing team members, even after the rotting fruit has been removed from the equation.
How do you avoid this costly mistake?
The answer is simple. Invest in the professionals.
Well, it seems simple to us, because finding qualified candidates in a variety of industries who are the right fit for the job is literally what we do.
The Better Together Group can provide you peace of mind that each potential candidate provided for the required role has been properly screened, is ready to work and aligns perfectly with your company’s core values. You can’t put a price on that.
With over 75 of years of hiring experience, our exceptional team of staffing professionals are highly trained to spot top-level talent. Finding and hiring a great employee is the best investment a company can make. It can have so many positive impacts on a businesses productivity, culture, and credibility.
To ensure your business’ future success, invest your money in the professionals, not a bad hire.