Bad Hires Cost More Than You Think
Are you about to make an offer to a candidate who impressed all your internal interviewers? If you haven’t done complete discovery on the candidate, you might want to stop the process. Now. The cost of a bad hire ranges from $25,000 to $50,000, depending on the position you’re trying to fill. But, that's not the worst of it.
A bad hire comes in many different forms. And it’s easy for these folks to slip through the cracks in today’s overheated job market. Managers want to bring team members on board and often rush through the hiring process.
The Impact of Bad Hiring
The desire to hire quickly is understandable, but, if you don’t do a thorough job of discovery, you may miss the fact that a candidate has tweaked a few details on their resume. That kind of enhancement happens in 50% of cases, according to an HR social network study cited by Brett McIntyre in his Business2Community article.
Once you’ve got a person into a position they’re not qualified for, the costs add up. Co-workers have to spend their valuable time training the new hire. In other cases, you might have brought a person on board who is not a good fit for the organization. According to a Career Builder study cited by McIntyre, “60% of employers report that bad hires could not work well with fellow employees.”
The disastrous results of not taking your time to hire the right person can add up if the individual is in a customer-facing role. People who are outwardly hostile or rude to your customers will negatively impact your company’s reputation. They can also bring down the morale of your entire organization.
Before You Make The Offer
Thorough vetting of any candidate should include a variety of tactics. Make sure someone on your staff does reference checking. In some industries, it’s well worth, even mandatory, to also conduct a background check. And don’t overlook the importance of behavioral assessments. These kinds of tools, such as the one offered by SalesFuel COACH, help you understand how a person will behave in a team work environment. The information you gain from an assessment can make a huge difference in your hiring decision.
When you’re hiring a new employee, you’re making an investment in that individual and for your business. Don’t shortchange your team by rushing through the process.