How Much Will A Bad Hire Cost You?

How Much Will A Bad Hire Cost You?

It can be hard to find the perfect match for your office. You can spend countless time and money searching for that perfect person. Once you think you’ve found them, you review the resume, check their references and bring them in for an interview. You are so in love with this person and cannot wait for them to accept your offer and begin working for your office. Then they start……

Suddenly, that perfect person that you fell in love with during the interview is not the same person you thought they were. You give them opportunity after opportunity to redeem themselves in your good graces.

• They are consistently late for work
• Deadlines are being missed
• Clients are not being followed up with
• Correspondence is getting lost in the shuffle
• And worst of all, they cause you to lose business

You wonder where did you go wrong, how could you have been so duped by this person? You then make the difficult decision to terminate this person. You have all of your warnings, performance reviews and poor work product in place to back you up. So, how much is this termination really going to cost you? Below is a list of factors that can contribute to your office losing money.

• Rising cost of unemployment insurance
• Cost for placing ads to recruit another candidate
• Lost time to recruit and train another candidate
• Costs associated with training another employee to take over their task
• Damage to employee morale
• Damage to client relationships

According to a new CareerBuilder survey on the cost of a bad hire, 69 percent of employers reported that bad hires lowered their company’s productivity, affected worker morale and could land you in court. Forty-one percent of companies estimate that a bad hire costs more than $25,000 and 25 percent said it costs more than $50,000.

The amount of the cost will vary depending on each individual company. It’s a good idea to reference a Bad Hire Calculator to determine an estimate of the cost. How much will a bad hire cost you?

References
MSN-2893-Leadership-Management-How-much-does-a-bad-employee-cost-the-boss
http://www.hrworld.com/calculators/badhire

Advertisements

How Does Your Employee Handbook Measure Up?

How Does Your Employee Handbook Measure Up?

An employee handbook is an important tool you can use to effectively communicate information regarding your company’s policies, procedures and employee benefits. A well-written handbook sets forth the company’s expectations for their employees. The handbook also describes what the employees can expect from the company. The employee handbook should cover all aspects  from attendance to a leave policy, dress code, performance expectations, and now social media use in the workplace. Proprietors of companies can create their own employee handbook. It is imperative to consider federal, state and local laws and regulations that may affect your business when creating your employee handbook. You may want to create multiple handbooks if you have both exempt and non-exempt employees. The handbook should also include the legal obligations of the employer as well as the rights of the employee.

The employee handbook is the most important internal document that dictates the policies of the company. It should be distributed to every employee of the company, regardless of their status. The employees should also acknowledge in writing that they have received the handbook. It is critical to have an employment attorney review the handbook before you publish and distribute it. If your company does not have an attorney already working with the company, or on retainer, it is highly recommended to have the handbook reviewed by an attorney or law firm that specializes in the area of employment law. They will be more up to date and familiar with all of the metrics that are occurring and changing in employment law. This safe guard will give your company the added protection that is needed if you ever are sued by one of your employers.

A basic employee handbook template can get you started.

References:
http://www.sba.gov/content/employee-handbooks
http://www.entrepreneur.com