Hiring the wrong person is expensive. And unfortunately, it happens more often than you might think. According to a CareerBuilder survey, 74% of employers say they have made a bad hiring decision, and the average cost of a bad hire was estimated at nearly $15,000 when you factor in recruiting, interviewing, training, and salary costs. Other estimates put the cost at anywhere from $17,000 to $240,000 or more, depending on the position and the company. For a small business or a department already stretched thin, that can be a pretty big hit.
What exactly is a bad hire?
A bad hire isn’t necessarily a bad person or even a bad employee. Sometimes, they are simply not the right fit for the particular job or company. Maybe they have the experience but can’t adapt when things change. Maybe they interviewed really well but don’t perform the way you expected once they’re actually in the role. Maybe they need much more supervision than anticipated or don’t respond well to feedback.
Then there are the more obvious issues: poor attendance, lack of engagement, a negative attitude, poor judgment, or difficulty getting along with coworkers. The problem is that a lot of these things aren’t going to show up on a resume.
The cost goes way beyond salary
When a hire doesn’t work out, you aren’t just losing the salary you paid them. You’ve also invested time and money into finding and hiring them, onboarding them, training them, and getting them up to speed. Then you have to start the process all over again.
Costs that are harder to measure
Managers spend time dealing with performance issues instead of focusing on their own responsibilities. Other employees may have to pick up the slack, which can lead to frustration and burnout. Productivity can suffer, projects can get delayed, and, in some cases, customer relationships and the company’s reputation can be affected. For a small team, one person who isn’t pulling their weight can have a sizeable impact on everyone else.
How can you reduce the risk?
There is no way to guarantee that every hire will work out, but there are things you can do to make a better decision. Don’t rely on the resume alone.
Ask behavioral questions that require candidates to give you real examples. Instead of asking someone if they are adaptable, ask: “Tell me about a time your responsibilities changed unexpectedly. How did you handle it?” The answer can tell you a lot about someone’s judgment, communication style, and ability to adapt.
Check references and verify skills. Candidates can sometimes overstate their experience. Reference checks and skills assessments can help confirm that someone really has the experience and abilities they say they do. And don’t overlook fit. Someone can have all the right qualifications and still not be the right person for your particular team or work environment.
Sometimes, temporary is a smart option
If you’re not completely sure what you need or want, or want the opportunity to see someone in the role before making a long-term commitment, temporary or temp-to-hire staffing can be a good option. You get to see how someone actually works, not just how they interview. The candidate also gets a chance to decide whether the position and company are right for them.
At JOHNLEONARD, recruiting is about more than just sending resumes. It’s about getting to know the organization, understanding what they really need, and knowing the candidate well enough to determine whether the two are a good match. Having a vacancy is frustrating, BUT hiring the wrong person and having to start all over again is much more frustrating and expensive.