Save Money by Making Better Staffing Decisions
It’s probably safe to say that most of us set out with the intent to do the right thing. As a hiring manager that includes finding the right person for the job, one who not only fits the skill requirements for the position but also clicks with the company culture. Anything less has the potential to evolve into a situation for the business that’s difficult and costly to rectify.
Like the bad guy or girl in a movie, some bad hires are easy to spot from the start. Textbook examples include a late arrival to the interview, interruptions to the hiring manager, or any general lack of courtesy. If you work as a hiring manager in any capacity, we’re guessing you’ve already seen more examples of this than you could imagine! Unfortunately, a bad hire can still happen to the best of us.
Taking the Bad Hiring Hit
What isn’t so easy to spot are the bad hires that occur as the result of not having enough time to screen potential employees or check out employer and personal references. Depending on which source you choose to reference, it’s estimated that a bad hire could cost a company anywhere from $4,000 to upwards of six-figures. Plus, those amounts primarily touch on the monetary aspects of hiring such as salary, training, benefits, and severance. What the amount cannot accurately capture is the intangible risks of lost productivity, tarnished customer relations, and diminished employee morale resulting from the failed hiring.
Despite the very real risks of a bad hire, many companies face the potential of this occurring. This is often because those handling the role of recruitment and hiring are sorely understaffed and do not have ample time to research and recruit the right candidates for a variety of positions. When you couple this with the “need it yesterday” mentality that drives many companies today, it’s easy to see why roles are often filled based on speed and availability, not the best candidate for the job.
Repercussions of a Hiring Fail
Current employees take up the slack – The inability of a bad new hire to produce the right quality of work can not only affect employee morale but will also require current employees time to retrain or coach the employee toward a (potentially) better performance.
Internal problems go external – A bad fit can jeopardize current projects and result in customer complaints that will plague a business long after the bad hire is gone.
Can’t/won’t play nice with others – Much like a bad apple souring the bunch, a bad hire can turn a tight-knit team into a warring faction. Good employees will resent the additional work and may also question the leadership who made the hiring decision.
Don’t let recruiting become an afterthought in your business. The right hire is a great way to not only bring numerous benefits to the bottom line, but it can also boost the productivity and morale of your current employees.
This article is brought to you by Staffing Kansas City, a full-service Kansas City employment agency that provides contract-to-hire, direct hire and temporary employment placement services.