How Much Does A Bad Hire Really Cost?
As business owners, we make a lot of mistakes (hey, we’re only human). But probably none as costly as picking the wrong person for a job. A bad hire can cost more than just a few bucks. So just how much will it cost your business if you make a bad hire?
Based on recent statistics from the U.S. Department of Labor, the average cost of a bad hire is near 30% of that individual’s salary. That means if you’re hiring someone to fill a position that pays $60,000 annually, hiring the wrong person could cost you $20,000! And that’s just the financial loss.
Picking the wrong person for the job can cost you more than just cash. Consider the time and resources you invested in finding and training the right candidate, and productivity lost during training times. Or perhaps you were strapped for time and focused more on hiring than you did on day-to-day operations or missed out on sales opportunities. Let’s face it, time is money, right?
Of the hidden costs of a bad hire, team morale is a big one. Studies show that 37% of companies reporting bad hires cited negative effects on employee morale because of it. An employee that wasn’t a good fit might not have the qualifications required to complete daily job tasks, or don’t mesh well with your company’s culture. This can weigh on your team and negatively impact employee morale.
In a recent survey, 18% of companies reported bad hires having a negative impact on their client relations. Clients value consistency in communication and relationships. High turnover with employees could raise a red flag and potentially damage a client relationship.
Hiring the wrong person for the job is not cheap. And it’s not worth it! Hiring a recruiter to help build your team will save you the hassle of thumbing through resumes and weeding out bad candidates. Have a question about hiring or what makes a good candidate? We’re here to help!
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Are you spending more money than you would like recruiting top talent and still feel like you’re coming up short?
Does your company have a low employee retention rate?
Have you found that your new employees have the skills, but aren’t performing well in your work environment?
If so, request a Free Strategy Session with The Talmadge Group today and learn the benefits of our IT talent management search strategy.
The traditional job search process is outdated and no longer effective in finding the perfect candidate for your organization. With our methods of objective evaluation and custom interview questions we use performance based results to find the candidate that fits your company culture and needs.
It’s important today to go beyond the resume and interview to find out their natural talents and non-talents along with their level of motivation in order to recruit top talent.
During your Free Strategy Session, we’ll go through the professional recruiting tools you need in order to spend minimal time, money, and energy recruiting top talent for any position. You’ll receive an overview of the Performance Based Hiring process in addition to:
- Why the Performance Based Hiring process is critical in the modern marketplace of information to winning the war on talent.
- Step-by-step insight into how the Performance Based Hiring Process would look in your business.
- How to effectively craft candidate profiles to attract the right talent for any position.
- The top signs to look for in a candidate to determine not only their level of talent for the position but also their motivation and commitment.
The Talmadge Group was founded in 1998 to provide integration, support, and technical programming services to clients of all shapes and sizes. Our long-lasting relationship with past clients speaks to the success that our Performance Based Hiring Process brings to companies looking for the right person to fill the position.
To schedule your free strategy session, call us at 770-757-6300 or fill out the form below. When you schedule, you also receive a free copy of Lou Adler’s in-depth guide to recruiting, Hire With Your Head.
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