Back to all articles Getting the right staff for your business is essential, especially when you consider the real cost of a bad hire. But the price you pay for recruiting the wrong person for the role isn’t just a financial one – it will cause issues in many other ways too.
Here’s a quick rundown of the real cost of a bad hire, demonstrating just how crucial it is to make better recruitment decisions for the benefit of your business, your team and your customers.
1. Employee experience
It’s not just about the new person you hire, but the effect that newcomer has on the rest of your staff and the overall experience in the workplace. A wrong hire won’t go unnoticed for long, and existing employees may end up having to take up more slack than is fair to keep things running smoothly. While they have to adjust to make way for the new hire, they also have to pick up the pieces when they inevitably leave, leading to reduced morale, increased stress levels and much less satisfied employees.
2. Culture and reputation
Creating a good culture within your company generates positive impacts both within your business and in terms of customer perception too. Get the wrong person to fill a role, and this balance can soon shift. As employees feel more pressured – or less trusting of your decisions – the company culture can quickly be compromised, which in turn can cause service issues, retention problems and damage to your reputation as a supplier and an employer.
3. Disruption and productivity
Onboarding a new hire is always going to have some kind of impact – but when the new hire is also a bad hire, the disruption can be tenfold. It can slow productivity, cause jams in your workflow and ultimately lose you money. It can also cause additional issues for management and HR teams, taking time away from more important business matters. This disruption then happens again later down the line when the bad hire leaves, and the process starts all over again.
4. The financial cost of a bad hire
So now let’s take a look at the figures. According to a report by REC, the financial cost of a bad hire is over three times the hire’s salary – so if you don’t get it right the first time, you’re pretty much throwing time, money and morale down the drain, all for a poorly executed exercise.
By utilising modern recruitment methods and a much more involved process, our experts can help you to find the right person for the roles you need to fill. So if you want to avoid the many costs of a bad hire, drop us a line to see how we can make a difference.