Cost of a Bad Hire

It is wise to take the time needed to get your hiring right the first time, be it with a recruiting agency or on your own. Those extra days of interviews and deep diving into personal motivations can save your company money by avoiding a bad hire.

Analyzing the true cost of a bad hire is something many studies have sought to better understand. We have all been there. We have a hiring need and an applicant whose experience matches our job description. We hire them, perhaps ignoring that feeling that they may not be the best fit for our position. But when that person leaves, voluntarily or involuntarily, the cost to the organization can be overwhelming.

Outside of the tangible loss (training time, hiring cost, etc.) there is a long-term effect on a business that may not be felt right away. The following are some additional organizational effects:

1) The additional time the employees put in to pick up the slack can have a detrimental effect on your organization. The ‘burn-out’ effect can allow the existing workforce to begin to look elsewhere for employment. Given studies have shown people do not voluntarily leave a company, they leave their supervisor. This can also begin to create a loss of confidence in their supervisor for existing employees.

2) If the employee leaving was in Sales, the loss can be even further damaging. Loss of potential customers as well as frustration of existing customers can greatly affect revenue. Not to mention the pipeline of future customers that may also leave as they are loyal to the employee that left.

3) Also, having to start the hiring process over, means your candidate pool will dwindle. Candidates are smart, and if they see constant openings, they become leery of applying due to the company potentially having issues.

In short, here at CG Recruiting Services, we recommend you invest your time to hire the right employees. If you need help, whatever your staffing needs, our team will work to do whatever it takes to find the right hire for your company.

Contact us today!