Recruitment and hiring unavoidably cost companies a substantial amount of money. Reducing turnover and retaining talent is a common goal for many employers. But occasionally even the most experienced hiring managers onboard someone who they may come to regret hiring. A bad hire can be someone who is not as experienced or qualified, as they led a company to believe they were. Or they could be someone who simply is not able to meet the needs of the job. Regardless of why someone may be considered a bad hire, it’s important not to overlook the overall impact of bringing on someone unworthy. In today’s article, we outline the costs of a bad hire to help you avoid such mistakes in the future.
Understanding the True Cost of a Bad Hire
Most companies are not truly able to put a number on the actual expense of a bad hire. Of course, it varies from company to company, and position to position. But it’s safe to say a bad hire can negatively impact a company in a variety of ways, such as lost training costs, sunk project revenue and productivity, overall compensation, recruiting fees, and even separation bonuses. The online company Zappos, for example, recently found it was spending $100 million on bad hires. That is a significant amount of money that can ideally be reduced and controlled, given the right strategy.
Avoiding Costly Mistakes
Savvy employers aren’t left at the mercy of their hiring mistakes, luckily. There are a number of steps you can take to mitigate these mistakes and reduce their overall impact on your business. Firstly, it’s important to evaluate your hiring processes. Organizations can take steps to avoid problems in the interview stage, such as having a consistent interview strategy, following a set list of questions, and focusing the interview process with multiple tiers of interviewers (such as recruiter, supervisor, director, etc.). Having multiple people evaluate the fit and qualifications of a candidate will help to weed out the bad seeds before they become problematic.
Proactive and Strategic Hiring Practices
Another common source of bad hiring choices is making decisions under pressure, such as project timelines or increased workload. Hiring from a strategic, long-term mind set can help your company avoid costly errors in staffing choices. Thinking strategically to evaluate your current and future hiring needs will help you avoid reactive recruiting. Think about hiring in terms of your long-term needs. Focus on retention, as well as recruitment, to ensure the staff you do bring on board are able to invest in your company for an extended period of time. Evaluate what experience and qualifications are actually needed to succeed within the listed job opportunity and engage with recruiters and staffing firms to help you find the type of quality talent that will meet your needs now and in the future.
Need help hiring quality employees?
For more advice on growing your team the smart way, contact the agriculture recruitment experts at Ag 1 Source today.