Recent surveys conducted among hiring managers and HR professionals across the country indicate that companies are losing between $15,000 and $17,000 on each bad hire.
Whatever that actual figure turns out to be, everyone in the hiring process can agree on one thing: the costs are astronomical!
Hiring for your company is not an easy task. You’re looking for someone with the right skills and education and also someone who fits into your company’s culture. And so much is riding on your choosing the right individual—your profits, your business’s reputation, and the well-being of your employees. Yet, the same survey that revealed how expensive the wrong hire could be, also showed that 74% of employers admit to having made a bad hire.
The Impact of a Bad Hire
Employers reported that the effects of bad hires were felt in three areas:
- Lower productivity (37%)
- Lower quality of work (31%)
- Time and money to recruit and train a replacement (32%)
It’s not hard to understand the high cost of a wrong hire when you consider all the expensive, wasted labor hours that can be attributed to someone who isn’t qualified to do the work.
Why Do Hiring Managers Make the Wrong Decision on Candidates?
Some hiring managers are aware that candidates don’t have the necessary skills but hire them anyway, hoping that they will learn quickly. Others hire the wrong person because they are under pressure to fill a vacancy immediately. And then there are those candidates who flat-out lie about their qualifications and get away with it because no one verified their information.
It isn’t easy to find workers for certain jobs (skilled trades, for instance), so companies are sometimes forced to hire someone that doesn’t have the proper credentials and then keep their fingers crossed. And sometimes interviewers are so focused on skills that they don’t pay enough attention to a candidate’s attitude.
Other Costs of a Bad Hire
As it turns out, bad hires don’t work in a vacuum. They create a ripple effect throughout the workplace as they lower the bar for everyone on their team. Their shoddy work can be contagious and result in lower morale, especially in those who are usually engaged in doing excellent work. And sometimes the cost of a bad hire can be measured in the price of losing good employees who leave because they feel disengaged and discouraged.
It Pays to Make an Effort Up From to Get the Best Candidate
Take the guesswork out of hiring. Metrodata Services Inc. is one of the leading pre-employment screening firms in Buffalo. We are here to confirm that your candidates have valid certificates and licenses and have the education and skills that they are claiming. We can also do criminal background checks to ensure the safety of your workers and customers. Let us help you make the best possible hiring decision the first time.