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?