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What is the cost of a bad hire?
Feb 02, 2018

Recruiting staff on your own can be a game of chance. Even an experienced manager can be duped by a slick interviewee or a false reference.

With the right training and transfer of knowledge, some individuals may ramp up and begin to add value to your business. But what about the ones that don’t live up to expectations or decide to leave after a short period of time? If this sounds familiar, you’ve had a bad hire experience.

So, what are the consequences of a bad hire and how can you avoid them in the future?

$15,000 – the average cost of a bad hire


$15,000. This is the average cost of a bad hire, according to a recent survey from Harris Poll, published by CareerBuilder. In the survey of over 6,000 HR managers, HR professionals and full-time workers, 74 per cent said that they’d made a bad hire in the past – costing them dearly in the back pocket.


Rosemary Haefner, chief human resources officer at CareerBuilder, explained that a bad hire can impact the entire team regardless of their tenure.


“Disengagement is contagious – poor performers lower the bar for other workers on their teams.”


“It’s important to note that there’s a ripple affect with bad hires. Disengagement is contagious – poor performers lower the bar for other workers on their teams, and their bad habits spread throughout the organisation,” she said.


Interestingly, CareerBuilder noted what makes a bad hire, based on the survey results. The most common was that the worker didn’t produce the proper quality of work (54 per cent), followed by a negative attitude (53 per cent), didn’t work well with other workers (50 per cent) and had attendance problems (46 per cent).

How to avoid a bad hire


Although there are no guarantees that a candidate will be a perfect fit for a role, there are safe measures that hiring managers can make to ensure the best person is employed.


In a Forbes article, Zappos CEO Tony Hsieh explained that there were seven “non-negotiable” traits that should be considered with more value than skills and background. This includes respect, belief, loyalty, commitment, trust, courage and gratitude. By finding individuals who match these traits, Mr Hsieh said businesses are in a better position to keep top talent and discover people who can add value to an enterprise significantly over time.

How can working with a recruiter help your business?


An experienced recruiter gives you confidence in the individuals you hire. The reasons for this are many, but most revolve around two things: time and expertise. A recruiter has the time and the capability to source only the best candidates, as well as performing effective background and reference checks (which can include psychometric and drug and alcohol testing if required).


Using vast industry networks and candidate connections, an professional recruiter will weed out potential bad hires and test beyond just skills to ensure a new hire will merge into your team and business seamlessly from day one.


Even an experienced hiring manager still has to perform their core work tasks, leaving little time for this level of meticulous screening and constant contact with great candidates – after all, a great talent will be courting a lot of potential employers, and a day or two of missed contact could result in a missed opportunity.


Finally, it also helps to work with a recruiter who can understand what your business needs and match you to the best candidates possible.


To learn more about how Bayside Group can support your recruitment efforts, feel free to get in touch with our team today.

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