The Cost of a Bad Hire
The cost of a bad hire can be seen in lost productivity, reduced sales and reduced employee morale to name a few negative impacts the wrong hire can have!
Your company is growing rapidly, and you’re desperately looking to fill in the gaps as quickly as possible. However, putting the wrong people in those positions could ultimately end up costing your business even more.
There is always some element of risk when hiring a new employee and it can be hard to know if someone will be the perfect fit for a role before they start, for that reason, making sure to have a process in place to follow to obtain the best possible outcome is vital. Not only can hiring the wrong person cause disruption among the team, but it can also have severe financial repercussions.
When it comes to hiring a new employee for a small business, pressure can be even higher and being able to spot high potential hires at interview stage can make all the difference, find out how: Why Small Businesses Can and Should Hire Big
In the U.K, 27 % of companies say bad hires have cost them more than £50,000 = €69,000
Besides direct costs like salary and benefits, ill-fitting employees also rack up indirect costs in lost productivity and eventually, the need to recruit and hire a replacement employee.
All in all, bad hires have a seriously negative effect on productivity and profitability. To avoid a bad hire, make sure you write a tight job description, highlighting the must-haves from the nice to haves. Keep in mind your company’s culture when interviewing a candidate and ask the questions you want to know the answers to, not the ones you feel you have to ask. Conducting psychometric tests can also help to further distinguish candidate compatibility.