The Co$t Of Hiring The Wrong Person
Have you just realised the new person you just hired is a bad egg? Are you putting up with someone who is giving you a headache? Are you about to kick that problem co-worker out the door? Whatever stage of employment a bad hire may be at, the impact of employing the wrong person can never be underestimated. In fact, almost all studies about the consequences of incorrect hiring all point the same way: A wrong hire costs you TIME, ENERGY and MONEY.
Let’s add up the costs. According to London-based firm First Course Recruitment, a company already begins throwing away hundreds to thousands of dollars the moment it takes in a wrong person by paying the sign-in bonus, processing paperwork, and training.
When that employee commences work and does actual damage on productivity, business losses will pour in. If the bad hire has already wreaked mayhem, the manager and the rest of the team will consume time and energy covering for that person’s lack of quality work, bringing down productivity all the more. Passing the problem on to Human Resources will most likely entail retraining or worse, legal remedies, both of which call for hefty professional fees.
Even firing a wrong hire involves money. The company will pay the severance package before it can finally say “good riddance.” And what if the replacement turns out to be another mismatch? For a business, going through this vicious cycle can cripple its finances.
Even the best managers pick a bad apples once in a while. Having a good hiring process and a strategy will reduce the probability of hiring the wrong person. Using psychometric tools are now standard in the recruiting process, they give you a clear picture of the person you’re considering; a great tool will tell you what your candidate will be like after the honeymoon period is over.