What many companies don’t realize is that a bad hire can cost more than just money. A bad hire can cost a company an estimated $25,000, with some companies claiming that it can cost closer to $50,000. Outside of just money, 69 percent of employers told CareerBuilder in a survey that bad hires even lowered employee morale, caused legal problems and caused a drop in the productivity of the office.
How Do Bad Hires Happen?
Your company has one of the best human resource departments around, so how come it hired someone who did not work out? There are quite a few reasons for this to occur. One such reason is that the company needed to fill the position quickly due to a sudden opening.
Another reason for a bad hire is that the company did not have the proper talent intelligence for the hire. This could include lies on a resume, a falsified cover letter, or even a bad recommendation from a previous employer or co-worker.
What Can a Company Lose?
Outside of money, a company can suffer losses in many sectors. This includes a drop in employee productivity, a loss in time and money to recruit and train a new employee, and negative impacts on client relationships.
One of the most telling problems with a bad hire is that of poor relationships with co-workers. Not only can this issue cause the company to lose money because of projects not being completed in a team environment, other workers fail to get work done because of the bad employee, and co-workers struggle with their daily duties because of a bad influence in the office.
What Does a Bad Hire Look Like?
You might be wondering what a bad hire looks like. Many bad hires have negative attitudes, attendance problems that begin immediately upon being hired, an inability to meet deadlines, customer complaints filed against the employee, low quality work and more. While these qualities can be difficult to spot, working with a staffing partner who understands your hiring needs can help prevent facing these issues in the future.
Contact the experienced recruiting professionals at Halpin Personnel to discuss your hiring needs and how Halpin can assist you.