Industry insights for job seekers and employers.

The True Costs of a Bad Hire

A recent survey conducted by Careerbuilder provides sobering information for employers who fail to effectively hire. Forty-three percent of employers who mistakenly hired the wrong person did so because they needed to fill a position quickly, but other factors were also cited. Considering that seven out of 10 businesses had experienced a bad hire and that a cost of between $25,000 and $50,000 is the estimated result of rushed hiring, steps should be taken to improve hiring outcomes.

Other factors that reportedly resulted in bad hiring included unforeseeable outcomes that were unavoidable (35 percent), a failure to sufficiently screen the candidate (21 percent, or a failure to conduct adequate reference checking (11 percent).

According to The Muse, the key to effective hiring is identifying undesirable traits in a candidate. Most such traits mentioned can be discerned by effective screening and reference checking. Examples of undesirable traits include tardiness, an inability to work well with others, and poor quality work. Some ways to ensure that a bad hire is avoided include the following:

  • Hire from within or from referrals. This is the safest route to a quality employee. If you know the person’s work style and quality of work, in-depth screening may not be required. For an employee who is referred, consider whether the referral source is reliable, and conduct reference checks and screening for due diligence.
  • Hire a staffing firm to conduct background checks and to conduct screening tests. Ensure the candidate fits your company culture; a key reason why employees leave a firm. Better yet, hire a potential employee on a temporary basis and monitor their work before you hire them permanently. Consider having the candidate work with a veteran of the company on a trial project.
  • To ensure a smooth assimilation, provide mentors, support, and adequate training for the new incumbent. Keep staff engaged by ensuring that they are challenged and design a development path. Investing in staff development is of long-term to benefit the company and will reduce recruitment costs.

Looking to hire in 2014?
Contact one of the expert Lancaster PA recruiters at Staffing Service USA. We devote the time and specialized resources to improve your hiring success and your staff retention.


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