A bad hire isn’t worth it — use these tips to avoid making a costly mistake.
It happens: You have a position that needs filling right away, and you don’t want numerous people to spend hours of their time looking at resumes and holding interviews, or you get a good gut reaction from one of the candidates, and you rush a hiring decision. After spending even more time (and money) hiring, training, and paying this new employee, you realize…this just isn’t going to work. He’s no more than “acceptable.” Or worse, disastrous. As you may well know, a bad hire costs more than just money to your company. What next? And how do you avoid making the same mistake in the future?
What happens when a company chooses to hire someone “acceptable” or just plain bad for the position rather than the best choice? Trust that the time and money you think you saved will cost you more in the end. A few blunt statistics can put it in perspective:
- Hiring a mid-level manager for 2.5 years, terminating, and replacing that person– what with costs of onboarding, compensation, severance packages, and other factors– can cost around $840,000, according to recruiter Jorgen Sundberg (inc.com).
- 75% of demand for new employees is to replace those who left — with the average cost of a new employee at $57,968, excluding training costs. (undercoverrecruiter.com)
- For a small business (64 employees), turnover costs = $8000
The cost of hiring a bad employee comes in various forms. As pointed out, there’s the monetary cost of hiring, training, firing, and replacing someone. Consider as well that these employees tend to need more time and training in attempts to get them to improve. And average or sub-par work will filter through the rest of your business…and to others who work with you. If clients and top employees see what they consider a move toward less quality, they may well leave to find a place that holds its standards higher. You don’t want to lessen your competitive status or mar your corporate image by keeping employees who bring you down.
If you already feel you have employees that don’t meet your expectations, sometimes you can help them improve through training, mentoring, and regular performance meetings and benchmarks. This can help an average employee rise to the challenge, especially if you make your objectives specific, measurable, and concrete. To cut off the problem before it begins, start by making your job description thorough:
- Make it a written record of exactly what you’re looking for with regard to experience, qualifications, and job duties/requirements. You can then use the latter as benchmarks for the employee to follow.
- Remove the candidates who don’t meet your standards — bearing in mind that someone who doesn’t have the exact set of skills you’re looking for but has qualified transferrable skills can fit the bill as well.
- Do phone interviews with qualified interviewers before in-person interviews with the final candidates, using that job description as a screening tool.
- Remember to utilize staffing and recruiting agencies, as well as job boards, websites for professional organizations, and social media sites such as LinkedIn for potential quality candidates.
The time and effort you take to get a quality hire will more than cover your ROI, unlike that spent dealing with the aftermath of hiring the wrong person for the job. Hiring a new person ranks as a significant, and hopefully long-term, investment — one that should not be undertaken lightly. Using these tips will help you make the right hiring decision for your company…and your bottom line.
Ready to create a strategic staffing plan? Contact the experienced recruiting team at Creative Staffing today to learn how we can help you find the right candidates and plan for future staffing needs.