The Hefty Cost Of Bad Hire And How To Prevent It

Bad hiring is a widespread problem in the business world. And they have more impact on businesses than you might think - both financial and non-financial. You'll be surprised how quickly the costs of a bad hire add up and how widespread the problem is.

Definition of a “bad hire”

Who exactly do we mean when we talk about bad hires?

Common traits associated with bad hires include people who:

• Misrepresent their skills or knowledge during the recruitment and interview stages
• Do not meet the minimum standards for performance and work quality
• Want to immediately talk about PTO and other benefits rather than their new role or the company - they're clearly focused on themselves and how your company can help them, rather than the other way around
• Lack of commitment (e.g., coming in late, leaving early, taking long lunch breaks)
• Have a negative attitude - a particularly dangerous trait because negativity can be contagious in the workplace
• Don't fit into your workplace culture or have difficulty getting along with colleagues
• They don't have the right personality for the specific job they were hired to do
• Have poor judgment when making decisions

These characteristics are usually evident within a short period of time when an applicant accepts and starts a position at your company.

Hiring the right people is so incredibly important. After all, it is your employees who make up your company. If a new hire doesn't work out, it can be very painful for your company.

Seven Ways Bad Hires Can Cost You Big Time

1.Lost productivity

Employees who do not have the necessary skills and know-how have difficulty making their own contribution. This can lead to costly mistakes and slow completion of work.

Although your managers should train new employees and help them get started, there comes a point where your employees should be able to do their jobs without constant supervision.

Whether it's a lack of skills, poor behavior, or a combination of both, constantly discussing performance issues with employees takes hours that could otherwise be used to run your business.

2.Lost time for recruiting and training

The recruitment process can be time-consuming and tedious. It includes these core tasks:

• Writing a job description
• Placing ads
• Contacting active and passive applicants
• Review of CVs
• Follow up with qualified applicants
• Conducting interviews and background checks
• Submission and negotiation of offers

How long will this all take?

IceHrm recruitment module can help you streamline the above tedious tasks and help you save time during your recruitment process.

This depends on the position you are trying to fill. A good rule of thumb is that it takes at least four to six weeks to begin the recruiting process. However, it may take much longer if it is a specialized position that requires special skills.

Meanwhile, the position remains vacant and you are forced to focus on other money-making activities.

Remember that recruiting your new employee is only the first step in filling your position. After a candidate accepts your offer, they will likely need to give their current employer two weeks' notice.

And when the time comes for him to join your team, you can't just throw him into his new job. Even if they are highly qualified and have years of experience, they probably still need some time to familiarize themselves with your company's operations, current projects and customers. Plan at least a few weeks to train your new employee.

If a new employee doesn't perform well, you've just wasted a lot of time.

3.High costs associated with hiring and training employees

It's not just the downtime that's costly when hiring and training a new employee. You also have to spend money every time you advertise on job boards, conduct assessments, and conduct background checks.

Maybe a candidate isn't nearby. Then you may have to fly him in for an interview - and you'll also have to pay for airfare, transportation, and hotel accommodations.

Training your new employee also involves costs. You may need to create new training materials or pay for training courses. When it comes to on-the-job training, one of your employees - usually the hiring manager - can help your new employee get up to speed.

4.Affecting morale and workplace culture

Quarrelsome or difficult employees are a major hindrance to your other employees. Personality conflicts within your team can lead to a stressful and disruptive work environment. Skirmishes and gossip can make it difficult for employees to concentrate on their work.

When bad employees drop the ball, your other employees are forced to pick up the slack. This can lead to resentment and bitterness among your employees, which in turn results in a poor working atmosphere.

Promising not to have to deal with a problem employee can encourage other employees to leave the company. Widespread employee turnover is also very costly for companies.

5.Dissatisfied customers

Your customers have certain expectations of your company.

An ill-equipped employee can be overwhelmed or under-challenged with their tasks and make mistakes, miss important details, and provide poor customer service. Your customers will not stay with you if the quality of your product or service goes downhill.

And as a rule, poorly hired employees only do the bare minimum. They will not make any effort to acquire new customers, take advantage of opportunities to strengthen customer relationships, or ensure that customers are satisfied with their service.

6.Damaging your company's reputation

View your employees as ambassadors for your company to the outside world.

An employee who doesn't represent your company well can deter potential new customers, partners, suppliers and other applicants. You might see that your employee is behaving unprofessionally or that he or she lacks critical knowledge and think: I don't want to have anything to do with that company if that kind of person works there.

An increasingly common example of this is employee activity on social media, which can be a major headache for company leaders.

7.Liability risk

Depending on their role, poorly hired employees can leave your company vulnerable to legal action that can cost you dearly - both inside and outside your company.

For example, an employee who lacks professionalism and behaves impulsively or inappropriately toward colleagues and customers can get your company into trouble. Think about sexual harassment or discrimination claims.

Employees who don't understand their roles and workflows, or who lack key knowledge and experience, can also make costly mistakes or omissions that cause problems for your business.

The costs of a bad hire are high and far-reaching, encompassing both monetary and non-monetary impacts on organizations.

To avoid miscasts, it is first important to understand what miscasts mean and what kind of damage they can cause. Then you should learn to recognize the red flags. This way, you'll be better prepared to attract and retain the best people for your company right from the beginning of the hiring process.

Tips by IceHrm: Revolutionizing HR Management for a Smoother, More Productive Workplace.