Have you ever heard the saying “Buy it nice or buy it twice”? You may think about this phrase when researching which vacuum to purchase from the store, or maybe you hear it when you go to the dealership to buy a car. However, do you think about this phrase when you hire?
Hiring a bad employee can cost a lot more than just money. Let’s explore the downsides of making a bad hire.
Team Morale: Increased productivity is a product of employee morale, higher profitability, and employee – employer loyalty. Adding one incompatible individual can throw off the entire feng shui of an office.
Studies have shown that 95% of the time, bad hires negatively affect the workplace.
Higher Turnover: Not only will the bad hire have to leave the company, but current employees may leave as well in reaction to a bad hire.
Studies show that 80% of employee’s deciding to quit has been directly influenced by other employees.
Reputation: Word of Mouth is a powerful tool! Bad employees whom are fired may talk badly about the organization after they leave. Great employees whom leave because of bad hires may offer other individuals’ information about bad hires and the organization in return may gain a reputation for hiring the wrong individuals. Today, it’s as easy as going to Glassdoor to leave a negative review about a company to change future clients or candidates opinions.
Money: While it’s difficult to put a monetary value on morale and reputation, there is a significant monetary loss that goes along with bad hires.
A career builder survey estimates $7,000 to $10,000 as the average cost of hiring the wrong individual for an entry or mid-level position. The cost of hiring the wrong individual in a manager position can cost a company anywhere in excess of $40,000.
No matter if you hire top-talent or minimum wage workers, hiring the wrong individuals can be detrimental to a company.
Avoiding Bad Hires:
It IS possible to avoid hiring people that don’t fit your business. It comes down to hard work and persistence. Review each resume, prescreen each candidate prior to an interview, and ask technical questions.
The time spent upfront from the staffing side saves the client and the candidate heartache down the road.
Applied Resource Group is here to help you find, screen, and interview employees. We have 9+ years’ experience in staffing IT and engineering roles across all industries. To make sure you don’t make a bad hire, hire us to make sure you only get the best candidates.
Fill out our contact form to get in touch with one of account executives to find out if we make a good business partner.