If you’re thinking about hiring new employees for your business there are a few interesting bits of information that are important to know in today’s competitive job market. The cost of a bad hire goes beyond the money your company will spend on advertising or prescreening. Hurrying the hiring process can become a big problem long term so it is better to concentrate on hiring the right person at the right time. Let’s look at some of the costs of a bad hire so you understand what to avoid.
- Expect to spend $25,000 to $50,000 per bad hire. In a survey conducted by CareerBuilder, 41% of the responding companies indicated that a bad hire cost them at least $25,000. 25% said this number was closer to $50,000. These dollar amounts represent lost revenue, bad productivity, and other related costs.
- The direct and indirect costs. To really assess what these amounts mean let’s look deeper at the numbers. The cost of a bad hire can be seen in lost productivity, time spent on recruiting, the expense of recruiting and training, negative employee morale, and a negative client experience.
- The factors that lead to a bad hire. It is interesting to note that there were several similarities among the reasons for a bad hire in the CareerBuilder survey. 38% of companies said the bad hire was a result of rushing to fill the position. 11% said they did not perform the right background checks or prescreening procedures. 21% said that the employees did not have the skills they described which could have been effectively determined through testing.
- The signs of a bad hire. There were some things that the companies began to notice almost right away in regards to the bad hire. 63% of these new employees were unable to keep up the quality or quantity of production expected. 63% didn’t work well with the rest of the team. 56% showed immediate problems with their attendance. 48% failed to meet the expected deadlines for their work.
- How to avoid a bad hire. There are some easy things to do that can change the entire experience for both you and the candidate. The first step is conduct effective interviews by asking behavioral questions. Check their references thoroughly to find out more about what makes them tick as an employee. Finally, make sure you provide training not only on the job but also on your corporate culture and the expectations of the job.
Are you ready to make a hiring decision to add to your staff in 2014? If you are looking for Austin Temp Agencies, contact us today.