The Cost of A Bad Hire and How to Reduce Them

Like romantic relationships, not everything is always perfect in the world of recruitment. Some people might look ideal on paper, but be your company’s worst nightmare. The company ultimately lets them go, everyone is relieved and replacement is hired. While that might sound like an easy fix, that one bad hire can cost a company $11,000-$24,000 a year, according to Career Builder.

Hidden Costs of a Bad Hire

Sadly, money is not the only setback that a company faces as a result of a bad hire. Keen Alignment says there are hidden costs related.

  • Employee morale can suffer, with lower productivity and engagement caused by the mis-hire. The team’s brightest stars may choose to leave before this individual does because they feel demoralized.  
  • Poor customer experience is another unpleasant effect for a bad hire. If this person works closely with clients, partners and customers, your company reputation may suffer a debilitating blow. This could result in negative feedback or even the loss of clients.
  • Overall quality will also suffer; whether your company offers products, services or both. Since the new employee is unable to deliver in the same capacity as other employees on the team, innovation and productivity will fall.
  • Micromanaging is just as unpleasant for those in leadership positions as for the teams that answer to them. Due to the drop in sales, the higher-ups will ask managers to keep their team on a tight leash. This will create tension and may result in additional employee turnover.
  • Once the bad hire exits the company, there is usually a rush to fill the vacancy. This sense of urgency can lead to another poor hire and the cycle repeats itself.

Getting the Right People

You do not have to hire a lot of frogs before you come across your next superstar employee. There are certain ways to make more informed hiring decisions. Business News Daily shares a few helpful tips.

Create a list of prerequisite and trained skills. The prerequisites are those that a candidate must have and also be prepared to demonstrate during the interview process. Trained skills are those that he or she will be taught during his or her first few months. It would be best to hire someone who has some proficiency so that you do not have to start from scratch.

Define your soft skills. Culture fit is not just the latest buzzword in recruitment but also one of the unsung heroes. Keep things objective by figuring out what you are looking for in a new hire. Make sure you bring this checklist with you each time you interview so you can assess each candidate for the right fit.

Be clear about your candidate requirements. A generic job description will give you a wider range of talent. While that can sometimes be a good thing, it would be advisable to try to limit your range by being clear about the “non-negotiable” prerequisites.

Assessing For Culture Fit

Culture fit can be a touchy subject for some as they mistakenly assume that it is synonymous with a gut feeling. Use an assessment that will allow you to make an objective decision. We have recently partnered with ThriveMap, a culture assessment tool that will help clients assess candidates objectively. Unlike personality tests, the candidates will be asked a series of questions that will help them gauge what factors they are looking for in their ideal company. If a company is interested in employing the candidate, despite him or her not being the best fit, ThriveMap will also provide the client with suggestions on how to manage the individual.

About us  

Continental Search recruits for feed manufacturers, their suppliers and integrated food companies across the US and Canada.  Our team of 6 recruiters and 3 researchers have over 80 years of combined experience recruiting.  For more recruiting tips and information on us, visit www.consearch.com or call (888) 276-6789.

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