But according to the survey of more than 6,000 hiring professionals worldwide, bad hires – individuals who turned out to be either poor cultural fits or poor performers – had a negative impact on businesses all over the world last year. Companies in the top 10 world economies reported lost revenue, productivity and business opportunities as a result of bad hires. When it comes to quantifying those losses, here’s what employers had to say…
- 27 percent of U.S. employers say a bad hire costs the company more than $50,000
- 29 percent of German employers say a bad hire costs 50,000 euros ($65,231)
- 27 percent of U.K. employers say a bad hire costs more than 50,000 British pounds
- 29 percent of Indian employers say a bad hire costs 2 million Indian rupees ($37,150)
- 48 percent of employers in China reported costs exceeding 300,000 CNY ($48,734).
Turning Data Into Action: What This Means for You
When it comes to avoiding hiring mistakes, employers said they were taking longer to extend offers while they assess whether a candidate really is the best fit for the job and their company culture: however, employers who want to expedite the hiring process – without sacrificing quality – may want to consider working with a staffing and recruiting firm. Even if resources are tight, working with a quality firm can eliminate the costs and labor-intensive hours of finding the right hire. Staffing and recruiting firms also offer freedom and flexibility to “try before you buy” candidates as contract, temporary or part-time workers before taking them on full-time.
If, on the other hand, you are a recruiter or staffing firm professional, make sure your clients are aware of the value of utilizing your services. Be able to show them how the costs associated with investing in your services are nothing compared to the costs associated with making a hasty, uninformed hiring decision.