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By Bayside Group

Aug 6, 2019

How poor employer interviews can cost your business

Formal interviews are still one of the most widely used methods of hiring a new employee. Despite this, hiring managers don’t necessarily have the tools and knowledge required to conduct an effective interview, particularly if they don’t recruit regularly. This can result in the hiring of new employees who aren’t well suited to your company. That’s why we’ve developed an Employer Interview Guide designed specifically for hiring managers.

From the cost of recruitment and training to the disruption and impact on staff morale, the price of a bad hire has far reaching consequences for any business. In large companies, bad hires can have a significant financial impact, and in smaller companies, it can seriously damage morale and productivity.

So, before recruiting for your next hire, evaluate the impact that a bad hire can have on the following four areas of your business.

 

1. Decreased Productivity

If you’re unable to determine the adequacy of a candidate’s skills during an interview, they may not possess the capabilities or knowledge needed to perform their job effectively. In most cases, this will then result in a decrease in productivity for your business. While it is perfectly normal for there to be a “settling in” period for new hires, they should also be able to lend their skills to areas of your company that may be lacking in these capabilities.

Placing someone into your business who doesn’t possess the necessary skills may result in other staff needing to pick up extra work to meet targets and deadlines, placing them under additional stress and lowering the quality of their work.

 

2. Culture and Morale

An ineffective interview can lead to hiring an employee who doesn’t only reduce the overall quality of work in a company, but also has a significant effect on existing employee’s morale.

Additional workload and stress will have an impact on the mental health and happiness of your team, and can drive the best team members away, often right into the hands of the competition. This will see much of the knowledge and expertise that you have helped these long-standing employees develop disappear.

 

Employer Interview Guide

 

3. Financial Impact

It costs money to hire and replace employees. Organisations need to go advertise, screen, interview, engage and induct employees, all of which comes at a financial detriment to a business.

To mitigate the damage of a bad hire, it may be necessary to reallocate people and resources, invest in further training or, in the most serious instances, let the employee go. Even then, there are further costs to be incurred, in terms of re-recruiting for the position and termination costs. And once the employee leaves, you’re back to square one, with a position still to fill.

 

4. Reputation

If you’re unable to effectively gauge a candidate’s behaviours and personality during an interview, you may hire someone who can severely damage both the internal and external reputation of the company.

According to a study carried out by Smart Company in 2018, 21% of SMEs reported losing clients or good staff members because of a bad hiring decision. If clients feel as though they have been poorly treated by your employee or that their work isn’t up to standard, this can damage relationships you may have spent years developing.  This sees you run the risk of your clients taking their business elsewhere.

Furthermore, a company’s internal reputation can also be negatively impacted by a bad hire. If management continuously hire staff who aren’t appropriate, their colleagues may begin to question management’s ability to make smart decisions. This can place a strain on the relationship between the management and the staff in a business.

It’s important to ensure that you’re equipped with the knowledge to carry out an interview that will see you acquiring engaged and skilled staff that are right for your organisation. To avoid hiring the wrong employee for your business, download our Employer Interviewer Guide, which covers techniques and strategies designed to ensure hiring managers engage the best people for their team.

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