Recruiting and hiring a new employee takes time and effort, and you have high expectations when you bring a new hire on board. But a bad hire can slip through the screening process, causing low morale and lost productivity. Here is an overview of the true cost of poor hiring.
Let’s face it. Advertising a position on job boards is essential for finding a new hire. Job board postings cost money, but you can’t expect to find suitable candidates if they don’t know the job is available. Just as advertising is necessary for brand awareness, job postings are a necessary investment for hiring.
When those job applications start coming in, your HR team has to spend hours reviewing resumes and interviewing candidates. Each interview and resume review represents a portion of the hiring person’s time and salary. Researchers found that it takes an average of 36 days to fill a job opening. That’s a lot of salary and human capital devoted to solving a preventable problem!
Interviewing candidates can also involve schedule conflicts and even travel expenses. These costs can easily add up when you are considering multiple candidates.
Criminal background and reference checks are a necessary part of the hiring process. You want to be able to verify a candidate’s educational and employment claims, and you want to find out about any criminal history before you hire them. It's worth the time and expense to run a background check to avoid the expense of firing and hiring again.
The costs of poor hiring continue after you’ve found a replacement. Next comes the time and expense of onboarding and training the new hire. While a new hire is learning the ropes, they are costing your company more than they are earning. Several team members will have to spend time away from their usual jobs to train the new hire and make up for lost productivity. It can take weeks or even months for the new employee to reach full productivity.
When a bad hire is on the job, poor morale and lost productivity can quickly spread throughout your company. Resentment builds when other employees notice must make up for the poor work habits of the bad hire. Low morale often results in hours spent on conflict management and employee discipline — hours taken away from productivity.
A disgruntled employee can spread bad publicity about your brand. They may even claim that they were a victim of unlawful termination, costing your company legal fees. A bad hire can drive customers and job candidates away from your business by providing poor customer service or by making negative comments about your company.
A rigorous selection process, including industry-specific listings, assessments and other tools, is a must for preventing hiring mishaps. Talcura uses state-of-the-art technology to help your HR team find quality candidates that will keep your business running smoothly.