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What Is the Cost of a Bad Hire (And How Can You Avoid Them)?

By September 4, 2019No Comments

A competitive business world means companies try to fill open positions quickly. Hiring the right people can set an organization up for future success and cultivate a strong workplace culture that keeps things running smoothly.  
There is always some risk in bringing on a new team member. Hiring the wrong person can have disastrous consequences for a company. An ill-suited employee can wreak havoc on team camaraderie, slow down business operations or even lead to financial repercussions. 
Here’s a brief overview of the cost of a bad hire – and why all businesses should be cautious through the recruiting process to attract optimal employees.  
Bad Hires Lead to Burnout: Employees that are not pulling their weight or are not equipped for the job have an effect on others who are being called on to pick up the slack. This can lead to strong employees seeking other opportunities, depriving a company of top talent. Burned-out employees who talk to their friends or professional contacts could give a business a reputation for poor hiring practices.  

Bad Hires Spread Their Bad Habits Like Wildfire: Poor performers in the workplace are going to lower the standard for everyone else. Even if the bad hire is removed from the company, leadership might still have to dedicate time and training days towards resetting certain behaviors or trends a bad hire might have introduced in a workplace.  
Bad Hires Can Cost Money … And Reputation: Research from Next Generation found how the typical cost of a bad hire is about 30% of the employee’s earnings in the first year. Aside from a direct financial hit, bad hires who mix and mingle with clients can damage relationships and partnerships, limiting future business opportunities.  
What should companies do to avoid bad hires? The key is in the details. Be sure to craft detailed job descriptions to weed out poor prospective employees so your hiring team can spend valuable time on the best candidates.  
Actually call listed references to get additional perspectives about a candidate. Some organizations choose to bring in an outside hiring manager to evaluate candidates against a different standard. Another smart strategy is to arrange a trial period or fellowship with a new hire to evaluate performance. 
Hiring new employees might seem like a high-stakes game. It does not have to be. A staffing service like FirstOption Workforce Solutions takes the guesswork out of hiring by working with an extensive range of contacts to source prospective employees with companies who are a good fit.  
To learn more about how your business can effectively hire the right people and avoid bringing on bad employees, contact FirstOption Workforce Solutions today at 210-733-3700 or contact us online.  

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