With so many eager and qualified job candidates out there today, you’d think it would be easy to find the perfect candidate for your company.
Unfortunately, businesses still fall prey to the plague of the bad hire much more often than would seem necessary. Bad hiring practices–not inferior candidate pools–are generally to blame for these costly mistakes. But are they costly enough to spark real change within your HR department and in your company’s approach to recruiting and hiring? If you didn’t answer with an emphatic affirmative (as in, “You bet they are!”), you may not be aware of the true cost of a bad hire to your business. Estimates suggest that the employee you just had to let go cost you anywhere from 15-150% of their annual salary. And that’s just one bad hire. Imagine if you’ve got serious employee retention issues. Those costs can really bleed your bottom-line. The trouble is, the true costs of a bad hire can be hard to pin down. The following pointers will put you on the right track toward a full accounting of such costs, both monetary and otherwise–and hopefully spur positive change in your hiring practices.