Are You Paying for Bad Hires?

October 29, 2018

Bad hires impact more than a company's bank account... they can have tremendous impact on a team's morale and productivity. We asked some of our colleagues about their past experience with bad hires, and here are a few of their responses:

"The woman was so far from suited for the job! Her skills, experience, and personality all clashed with our department. I ended up having to spend hours upon hours training her repeatedly. That wasn't in my job description."
"Our boss was so desperate to fill a role, she hired the first person that applied. They were so negative, it ruined our positive team dynamic."
"Think of how many people are involved in onboarding and training a new hire... HR, payroll, management, and the department's whole team. It's time consuming, especially when that person won't be around in a few months!"
"I worked at a factory, and found out that a co-worker had been stealing supplies for years before he was found out."
Bad Hires - Sorry No Returns
A recent study found that 66% of employers report adverse effects from making bad hires, and that 27% have lost at least $50,000 per bad hire.  Clearly, hiring is a risky transaction: here's a quick look at what you might get for not "hiring right."

The Receipt

Employers guilty of bad hires report these adverse effects:

  • Lost Productivity - 36%
  • Negative employee morale - 32%
  • Hiring replacements costs - 31%
  • Negative impact on client relations - 18%
  • Fewer sales - 10%

A Few Characteristics of Bad Hire:

  • 63% - Fail to produce quality work
  • 63% - Don't work well with others
  • 62% - Have a bad attitude at work
  • 56% - Have immediate attendance problems

Why Companies Made Bad Hires:

  • 43% needed to fill the job quickly
  • 22% had "insufficient talent intelligence"
  • 92% failed to check references
  • 8% lacked a strong employment brand

What steps are you taking to make sure you are paying for Good Hires?

Source:  http://www.careerbuilder.com

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