The repercussions of hiring the wrong person can be dire. According to CareerBuilder, four out of ten employers stated that a bad hire will cost them at least $25 000 (R325 000) over a one year period. This is why companies sometimes take a long time to reach a decision when choosing a candidate to fill a vacancy.
Interviews, psychometric evaluations, credit and reference checks all lengthen the hiring process - and can contribute to making employers lose sight of who really is right for the job.
There are many stories that demonstrate how a bad hire can impact revenue, clients and other employees. Take, for example, Passenger Rail Agency of South Africa's top engineer, Daniel Mtimkulu. His team was responsible for a R600 million project to design locomotives. Deep into the project, Mtimkulu's qualifications were questioned and he was suspended, impacting the project and company.
What are the real costs of a bad hire?
A bad hire can have a significant impact on a company's bottom line. Not being able to perform the job means that the new hire will cost your company time and money. This is especially problematic if you're involved in public service delivery.
Company reputation may be tainted by a bad hire. Although your client relationships should be strong enough to withstand a bad hire, the person will leave a negative impression.
The rest of the team will have to compensate for the bad hire's poor performance, affecting productivity.
Negative employee morale
According to CareerBuilder, 95% of employers confirm that a bad hire impacts company's morale.
Studies show that it costs a business about one-fifth of an employee's annual salary to replace a bad hire. When you consider all of the costs associated with employee turnover, it important to take every precaution to avoid hiring the wrong person.
Some of the things that you can do to achieve this include:
- Consult with a specialist recruitment company
- Thoroughly check references
- Establish specific candidate requirements
- Evaluate the candidate's abilities against these requirements
Hiring the right candidate takes time and patience. It's important to know, fundamentally, what you need in a candidate so that you can ensure you meet your requirements.
Remember, that no hire is better than a bad hire.
Contact Network Recruitment, for all your specialist recruitment needs.