FROM the cost of recruitment and training TO the impact on staff morale, the price of a bad hire has far reaching consequences for any organization. In large organizations, bad hires can have a significant financial impact, and in smaller organizations, it can go as far as jeopardizing the future of the business if clients leave.
Bad hires often occur when there is pressure to fill a position quickly, and therefore corners are cut during the recruitment process. While there is always a risk when hiring a new employee, before recruiting for your next hire, regardless of their size, consider the impact of the following four areas on your business:
- Decreased productivity
If what applicant described in a CV is not who the job applicant really is, they may not be able to do the job that you’re hiring them for. This could have a negative impact on productivity, as other staff may need to work harder to meet targets and deadlines, damaging group morale. Bad hires can drive the best team members away, often right into the hands of the competition, taking the skills, knowledge and expertise that you have helped develop with them. They can also lower the standards for the rest of the team.
- Cultural imbalance
Having cracks in the culture, simply because other members don’t add value to the team, can impact the whole workforce. As well as ensuring that the new hires have the right experience and qualifications to meet the requirements of the role, assessing how they will fit in with your company’s culture.
Bad hires, especially those who are client-facing, can damage relationships if customers are not treated well, and relationships are not easy to rebuild once trust has been broken. Organizations have to ensure that employees representing their business can enhance or maintain its reputation and profitability not harm it.
- Financial impact
Lastly, let’s not forget the money. A report from the Recruitment and Employment Confederation (REC) reveals that 33% believe that a hiring mistake costs their business nothing, when in reality, it can cost a business loss due to the money wasted on training, lost productivity and increased staff turnover.
As the cost of hiring and developing new employees continues to rise, to avoid wasting time, money, and resources. Contact Nicole Sinclair Consulting for accurate and speedy recruitment. Our Recruitment services promise candidates who have the desired competencies, cultural fit, and abilities to drive your organization result.