The recruitment process is the first step to empowering your company's human resources, which require a long and careful consideration. However, when facing with open positions and under the pressure of time, energy, recruitment funds, or blaming a poor performer for a freeze on hiring replacements, many recruiters have ignored the employee’s shortcomings to make an offer. They think a warm body is better than nobody. As a consequence, these quick decisions lead to the poor fit, simultaneously you literally have to pay a heavy price.
The Harvard Business Review points out that as much as 80% of employee turnover is due to bad hiring decisions.
But the costs of a bad hire doesn't end there while not to mention the potential negative effect to a company’s culture, reputation and productivity.
- Teamwork: When your team has at least one member is underperforming or carries around a consistent bad attitude, it will greatly affect to team morale. 60% of hiring management and HR professionals surveyed said bad hires don’t get along with other. In this strange and uncomfortable mood, they will express a negative attitude to everything they do and spreads it to your work environment and other employees’ productivity
Making a bad hire at least somewhat affects the morale of the team
- Customer: The cost of having a new customer is much more expensive than taking care existing, loyal customers. According to poor performance and work efficiency of the bad hire, 49% of them are actually responsible for customer complaints and negative impact on client solutions.
- Hiring times: According to executives surveyed by Robert Half, it takes 5 weeks, on average, to fill a staff-level position and 7.5 weeks to fill a management-level position. For small businesses, a position that goes unfilled for weeks or even months can translate into lost revenues, overburdened workers and missed opportunities.
A bad hire also leads to much time waste
- Compensation and other expenses: These include: recruiting funds, relocation costs and training costs all add up to big numbers. 41% of companies surveyed say that a bad hire in the last year has cost them at least $25,000.
The bottom line? A bad hire can happen to even the best of companies, but there are ways to reduce the chances of getting burned such as diversify your hiring resources, take advantage of the tools, reliable recruitment channels available. For instant, human resources could be more efficiency by improving the job description, and your employees may be able to offer some referrals or a large CV database from the headhunter companies.
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