Hiring is a multifaceted undertaking. From posting the position and interviewing to finding the right fit for your company, the process calls for a lot of careful consideration. Of course, a major aspect to consider is the cost, especially if the person hired turns out to be a bust. To help you get a fuller view of what’s at risk, here is a brief look at the harm a bad hire could potentially cause a company.
First, let’s explore the data. According to a recent survey of senior managers, companies can expect to lose around $14,900 on average with a bad hire. That number, however, can reach as high as $240,000 for higher level positions and supervisory roles. To put it into a different perspective, research from the U.S. Department of Labor shows the average cost of a bad hire is up to 30% of said employee’s first-year earnings.There is a wide range of factors that play into these averages. Chiefly, there are the expenses of hiring, recruiting and training for the bad hire, as well as the eventual replacement.
The hiring process should consistently be revisited. Including background checks, drug screenings and other such tests is essential in protecting the company from potential liability. There’s also investing in automation tools that support the hiring process and effectively handling other responsibilities. Implementing these changes and others like them can lead to better interviews and more robust recruitment procedures. The result could be mitigating the risks of a bad hire by getting the right candidate for your company and building a successful workforce.
