The Cost of a Bad Hire
When you need to fill a position, you are often in a time crunch and feel urgent. No matter the need, try and slow down to hire well. The cost of a bad hire is both pricey and hurts a variety of other areas of your business.
Costs Associated with a Failed Hire
In the event that you make a hire that doesn’t work out, you’ll find that the costs associated with this unpleasant situation are not just financial.
Other Costs include:
- Salary loss
- Recruitment time
- Training and education
- Missed deadlines or potential business
- Team morale
- Increased supervision
When you think about all those costs, then you’ll want to avoid a bad hire more than anything. Some of the most trying aspects of the above list are recruitment, training and a greater need for supervision.
Whether your company recruits themselves or uses an agency, there is a lot of time invested with recruitment. The process can be long, expensive and overwhelming when trying to recruit top talent.
If your company makes a poor hiring choice, you’ll have to go back through the process all over again.
Costs and time spent include:
- Ad placement
- Criminal and credit checks
Recruitment should be carefully handled and have several people involved during the decision making process.
In the beginning, you’ll spend time with your new hire in training, orientation and completion of new hire paperwork. Since you spend so much upfront time with your new employee, it becomes harder to terminate because you’re left with the hope it will work out.
You’ll save time and money by making a necessary change rather than continuing to invest in someone that is not the right fit.
If you hire and the employee is not performing well, then you’ll have to give them more supervision. The problem with having to supervise more is that you’re not able to complete your own job in a timely fashion. This makes the bad hire more costly, frustrating and even hurts other employee’s performance.
Don’t get so rushed in the hiring process that you make a choice you’ll live to regret. Be sure to do more than one interview, complete your company’s hiring process in full and consider in advance the real costs associated with hiring your candidate.
Your HR department will appreciate your care, effort and thoroughness in making a solid hire. The paperwork alone with hiring is a lot for any company to complete.
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Sustainable Growth & Profit Consultant, Coach, Mentor and Counselor/Therapist for Business Owners and Professional.
Written by our associate Gary Sorrell, Sorrell Associates, LLC. All rights reserved worldwide.