The Cost of a Bad Hire
Businesses can be eager to fill an open position for fear of lost productivity and growth. Unfortunately, most businesses don’t realize the cost they will face after a bad hiring decision until it’s too late.
Loss of Productivity
No one wants to be losing out on opportunities because they don’t have enough staff or the right resources. The solution that most people turn to first is hiring as quick as possible. While this does solve your problem of an open position, it will eventually cause more challenges in the future. If the new hire doesn’t have the right skills and knowledge to complete the job, your productivity will actually drop lower than it was when you had the open position. Your team will end up taking more time and resources to try to train your candidate to have right skills and knowledge to complete the job.
High Employee Turnover
A company’s employee turnover rate is one of the most important metrics of success for a business. With a low employee turnover rate, prospective clients and candidates can conclude that the employees are content and qualified to do their job. A bad hiring decision can begin to undo all your efforts of maintain a low employee turnover rate. Keeping your employee turnover rate low with help you attract the right candidates and retain your essential staff.
Low Company Morale
You know the saying ‘one bad apple can turn the bunch bad’? Well, same goes with a bad hire. If you bring the wrong person onto your team that doesn’t value or respect your company culture, you will start to see other employees mirroring their behavior. This will eventually lead into a decline in your overall company morale and make it harder to retain your top talent.
While you may not initially see the cost of the bad hiring decision, it will eventually end up effecting your business in more ways than not. And most businesses get stuck in a cycle of bad hires because they don’t recognize the warning signs of a bad hire.
We’ve collectively been in the industry for 50 years, so we know how to attract and find qualified candidates. If you need any assistance in making the right hiring decision, email us at sales@recruitability.ai