When a single new hire doesn’t work out, stress ripples through the organization. When it happens repeatedly, those ripples of stress quickly become a tidal wave that wipes out profits, employee engagement and revenue growth. Turnover affects almost every aspect of a business, including tangible and significant costs such as squandered payroll expense, litigation, wasted training dollars, wasted onboarding dollars, and much more.
And yet these tangible costs, substantial as they are, really just represent the tip of the iceberg. Hiring mistakes hurt morale, productivity, customer relationships and brand image. Once a company acquires a reputation for having heavy turnover, it will be seriously challenged to attract top job candidates, great customers and top-tier suppliers.
So why are companies making poor decisions when it comes to the hiring process? It may be that your company in too much of a rush to fill a position and your vetting process is simplified to save time. Your business may be assessing the wrong skills and a complete overhaul of your assessment tools is needed. A lack of behavioral interviewing, discovering how a candidate acts in a specific employment-related situation, is an issue because you won’t get a sense of how a hire will work for company until their first day.
Establishing a standardized, documented hiring process with skilled personnel will help you reduce the risk of making a bad hire. With 74% of companies admitting that they make at least one bad hire annually, this isn’t the area that you should put aside and hope for the best. Prioritize your hiring process and watch your new hire retention skyrocket. If done well, employee morale and engagement will increase while your hiring costs will greatly be reduced.
The infographic below, What Are Bad Hires Really Costing Your Business?, provides a high-level overview of the costs of bad hires, why it happens and how to fix it. Read on to learn more.
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