This post originally appeared on TLNT, an HR blog about “The Business of HR,” with news, insight, and topical information from experts and thought leaders in HR, talent management, and all areas related to HR and managing a workforce.
It’s hiring in its most basic form, but not so fast – what happens when that candidate doesn’t show up? Or doesn’t fit in with the team? The list of “what if’s” could go on and on.
Unfortunately, poor hires are a common business hazard. So much so, that according to CareerBuilder research, more than two-in-three companies said that a bad hire adversely affected their business in the last year.
The cost of bad hires
The cost of these bad hires is stunningly high as well; nearly one-in-four hiring managers said that one, just one, bad hire cost their business more than $50,000 in the last year, while four-in-10 said a bad hire cost them more than $25,000. With the recession slowly easing and companies beginning to add to strained staffs, losing valuable resources from the fallout of poor hiring choices is something that many organizations simply cannot afford.
One of the resources lost when a bad hire is made is time, plain and simple. Bad hires cost time as the company has to recruit and train another worker.
They’re also a major factor in turnover, which leads to lost time; According to the Harvard Business Review, 80 percent of turnover is caused by bad hiring decisions. In addition, poor hires can have a negative effect on employee morale, which can lead to lost productivity and more.
The CareerBuilder survey of more than 2,400 employers also found that of employers who made a bad hire, 36 percent said they think they made a mistake hiring someone because they needed to fill the job quickly. It makes sense that often when you need help, you need it as soon as you can get it. Hiring the wrong talent for a position, though, can leave you even further behind the second hand.
How to keep hiring on track
With the seriousness for hiring the right candidates so clear, especially as companies finalize recruitment budgets for 2011, many are taking strides to avoid hiring someone who isn’t a good fit. How can you stay on track next year?
Brent Rasmussen is president of CareerBuilder North America, and in his role, he heads the day-to-day operations of the North American division. An accomplished strategist and industry veteran, Rasmussen drives the innovation, expansion and ongoing revenue growth of CareerBuilder.com the U.S.’s largest online job site, and CareerBuilder Canada. Prior to joining CareerBuilder, Rasmussen served as manager of Business Services for Xerox Corporation.Related