My last post / email of the year! My best wishes to you for a happy and healthy Holiday Season – and best of luck for a successful and prosperous 2012!
Have you made the same mistake as more than 2/3 of the businesses in the US in 2011? I’ve been writing about how you can avoid this mistake all year. Bad hires cost you money, hurt morale, and decrease productivity. And you’re not alone! But don’t just take my word for it – read on.
According to a new CareerBuilder survey on the cost of a bad hire, 69 percent of employers reported that bad hires lowered their company’s productivity, affected worker morale and even resulted in legal issues.
Forty-one percent of companies estimate that a bad hire costs more than $25,000, and one in four said it costs more than $50,000.
While some mistakes are beyond the hiring manager’s control, there are ways to avoid hiring the wrong person. “The more thoroughly the candidates are vetted, the less likely they will be a poor match,” says Rosemary Haefner, vice president of human resources at CareerBuilder.
Hiring mistakes happen…but why?
When asked to give a reason for the bad hires, an estimated 34 percent of employers attributed the mistake to the fact that sometimes things just don’t work out. A rushed decision, however, topped the list of reasons companies gave for making a bad hire.
- 38 percent of employers said they needed to fill the job position quickly.
- 21 percent say insufficient talent intelligence contributed to bad hiring decisions.
- 11 percent didn’t perform reference checks (a commonly undervalued part of the hiring process, according to Gilt GroupeCEOKevin Ryan.)
The price of a bad hire: It’s more than just money
The price of a bad hire adds up in variety of direct and indirect ways. For example, 9 percent of companies said bad hires result in legal issues and 11 percent said they result in fewer sales. The most common effects of a bad hire are:
- Lost worker productivity: 41 percent
- Lost time to recruit and train another worker: 40 percent
- Costs associated with recruiting and training another worker: 37 percent
- Negative impact on employee morale: 36 percent
- Negative impact on client solutions: 22 percent
How bad is bad? Characteristics of a bad hire
When it comes to what makes someone a bad hire, employers reported several behavioral and productivity related problems:
- Failure to produce the proper quality of work: 63 percent
- Failure to work well with other employees: 63 percent
- Negative attitudes: 62 percent
- Immediate attendance problems: 56 percent
- Subject of customer complaints: 49 percent
- Failure to meet deadlines: 48 percent
At TriStarr our job is to make good hires. Sure, we don’t hit a homerun every time. But, we have put in place a proven business model that will reduce your bad hires, and yes – save you money. Click HERE and provide your contact information and we’ll show you how.
TriStarr Staffing carefully screens and presents only the top 20% of qualified candidates to our clients. TriStarr Staffing provides unique solutions for your staffing and HR Needs. Whether you need short term temporary employees for a project, or sophisticated Recruitment Process Outsourcing solution, TriStarr has the experience to identify solutions right for your needs. A free HR Audit will provide you with peace of mind knowing your HR Practices are up to date, and in compliance. For more information click here and paste “I’m Interested in a FREE HR Audit” in the comment box.