The Cost of the Wrong Hire
The search for talent right now is intense. Everyone needed workers yesterday, and the talent pool just seems to be getting smaller. But production must go on, so what do we do? We rush to hire just to fill our open positions. However, that may not be the best option. According to a CareerBuilder survey, hiring the wrong employee could cost you $10,000 on average for an entry to mid-level position and $40,000 on average for a management employee. Jörgen Sundberg, CEO of Link Humans, reported that the cost associated with hiring a new employee can cost as much as $240,000. For that kind of money, you want to be sure you’re not losing your employees or hiring the wrong ones to begin with. These are just the financial numbers associated with a bad hire. Other impacts include:
Your team is only as good as its weakest link and poor performers lower the bar for the rest of the team. Unfortunately, disengagement can be contagious. It is crucial to catch a ‘bad apple’ quickly so they don’t poison the rest of the group.
If other employees keep witnessing turnover and have to keep picking up the slack for other team members or simply because of being short staffed, this can take a big toll and cause even your best employees to burn out.
Loss of Trust
Employees lose trust in management and sometimes in the overall company initiatives when they constantly see turnover, frustration and low productivity. This will also lower cultural morale which, in a lot of cases, is very hard to build back up once its gone.
How can I improve hiring practices?
1. Have a defined hiring process that specifically outlines what you are looking for. According to a 2015 talent acquisition study from Brandon Hall Group and Mill Valley, organizations that lack a standardized interviewing process are five times more likely to make a bad hire than those that do have a process. Also, do your homework. Complete reference checks and ensure the person interviewing in front of you is who you will get on the first and 100th day of work. Don’t have time to do all of that? Give Barracuda Staffing a call! We’ll take away the headache inducing hiring process and find what you’re looking for.
2. Tell your story! According to another CareerBuilder survey, Nearly 1 in 10 respondents said the person they hired didn’t work out because the company did not properly convey its brand or culture to the new hire. In other words, the company to not create buy in.
3. Build a welcoming onboarding process. Employees that feel automatically welcomed, included and prepared will be more likely to stay. However, it doesn’t end there. Add on-going check-ins and trainings for your employees so you can ensure they stay engaged and knowledgeable.
Written By: Brittany Currier