How bad can a bad hire affect your company?

Finding the right person to fill a position can sometimes be a tedious process.  A new CareerBuilder study shows the cost of choosing the wrong person can be quite costly, so it’s better to make the right decision from the very start.  According to a survey of 2,494 managers and Human Resource professionals conducted between August 13 and September 6, nearly 70% of employers have been negatively affected by a bad hire this year.

“Whether it’s a negative attitude, lack of follow-through, or other concern, the impact of a bad hire is significant,” said Rosemary Haefner, Vice President of Human Resources at CareerBuilder. “Not only can it create productivity and morale issues, it can also affect the bottom line.” Many could potentially avoid this issue if they take a step back and examine if the candidate is a fit for the job.

According to the CareerBuilder survey, there are several reasons why companies make the unfortunate decision to unknowingly welcome a bad hire. The most obvious and common reason would be rushing the decision process.  Two-in-five managers felt pressured and needed to fill the job opening – this attributed to a bad hire.

bad-employee Others include: insufficient talent intelligence – 22%, sourcing techniques need to be adjusted per open position – 13%, fewer recruiters due to the recession made it difficult to go through applications – 10%, didn’t check references – 9%, lack of strong employment brand – 8%.  Sadly, some of the reasons employers made the wrong decision of going with a bad hire was because they weren’t necessarily sure why they chose that individual, and sometimes it was just by mistake.

The survey indicates employers reported several behavioral and performance related issues when it came to the characteristics of a bad hire: the employee didn’t produce the proper quality of work – 67%, employee didn’t work well with others – 60%, employee had a negative attitude – 59%, employee had attendance problems – 54%, customers complained about the employee – 44%, employee didn’t meet deadlines – 44%.

Luckily there are some ways to minimize bad hires. According to the FutureStep Global Talent Impact Survey, the hiring process is becoming geared more towards quality rather than speed focused in order to reduce bad hires.

Research from Jobvite shows that job referrals are those that typically stay longer and are hired quicker than employees hired through other avenues, such as career websites and job boards.  So, ultimately utilizing employee referrals as a means of recruitment is a beneficial way to increase retention and quality levels, with the added bonus of being one of the fastest ways to hire with significantly reduced costs.

We are only human and we’ll always have the possibility of making mistakes.  Learning the qualities to avoid a bad hire is crucial, especially when you’ve been down that road before. The cost and negativity surrounding a bad hire can be something you never want to experience again.  When the position becomes available, make sure the first available person isn’t necessarily your first choice.

About TRC Staffing Services, Inc.

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