The cost of a bad hire can cripple a business. You spent time recruiting, hiring, onboarding, and training this person to find out they just aren’t going to work out. The cost of lost productivity, recruiting costs, and training all add up quickly. In fact, it costs more than you think.
How Much Does a Bad Hire Cost?
It has been long said that the cost of a bad hire sat around 30% of the employee’s annual salary. However, the estimated cost to recruit, hire, and train someone is $240,000 total. So, you’ll lose the money spent training them, plus much more.
The Cost of Your Manager’s Time
Management typically has to oversee bad hires more closely. Employers estimate that about 17% of a manager’s time is spent supervising employees who are performing badly. Over a single week, that adds up to a full workday spent supervising a bad hire.
Disengaged Employees Cost Billions
Much of the time, employers say that they simply hired the person for the wrong job. This means they didn’t spend enough time in the recruiting process getting to know the candidate. When someone isn’t a good fit, they aren’t engaged. Employees who aren’t engaged cost companies in America billions of dollars each year.
Your Reputation Will be Damaged
A bad hire can damage your reputation with clients and with other candidates. They may tell other people in the industry that they had a bad experience with your company or brand. Similarly, they may treat your customers/clients poorly or underserve them. This will prevent them from returning or recommending you anywhere else. You will miss out on new clients and possibly even lose long-time customers.
Teamwork Will Suffer Over Time
Adding a bad hire to your staff will hinder teamwork efforts. Your employees won’t want to work with the person who is not engaged or difficult to get along with. If the person’s values don’t line up with their or the company’s, they will be less likely to successfully work together. This can lead some employees to leave their jobs, impacting your retention rates and requiring you to spend more money on recruiting. It will also hinder productivity, which costs your business money too.
Potential Legal Fees to Address Issues
In some of the worst-case scenarios, a bad hire can even lead to a lawsuit. If there is a contract involved, the candidate may try to sue you for the remaining salary they feel they are owed or other costs. The legal fees can be ridiculous, especially if you don’t have a lawyer on retainer already.
Working With GoSource Can Help You Avoid a Bad Hire
Working with a staffing agency can help you avoid making a bad hire. The professionals at GoSource have carefully constructed a talent pool with top-quality candidates to choose from. We have already verified their skills, checked references, and interviewed them. This helps us ensure that each candidate we send you will be a good fit for the company all around.
Learn more about how the team at GoSource can help you with your hiring needs.
