The consequences of hiring mistakes have an impact on so many areas of your organization that it can easily be the costliest business blunder you can make. Bad hires can wreak havoc on your company’s reputation, your workers’ morale, and your bottom line Frequent hiring and firing can be disastrous for productivity, wasting the worker’s time assigned to provide the training and the expense of paying an employee who will not be using it.
You know your hiring process needs help if you have a high turnover rate. A high employee turnover rate can make your current workers feel insecure, making your company vulnerable to losing valuable people looking for security and an organization in which they can grow.
The U.S. Department of Labor estimates that the price tag for a bad hire is at least 30 percent of that employee’s first-year earnings. For a small manufacturing company, that type of investment—without any return—can be devastating. But the monetary loss isn’t the worst of it.
Bad hires ruin relationships
When you continually hire the wrong people, your relationships and reputation are on the line. Bad hires could irritate good customers, clients, and colleagues. You could be looking at a loss of sales and strategic partnerships. And your company’s standing in the community could be diminished.
The drop in morale is often contagious
When one of your workers fails to do the job, it falls on others to pick up the slack, and the complaints spread through the workforce. If one of your hires is always difficult, the rest of your people are affected, and it might not be long before some of them leave for a calmer and more upbeat work environment. If word spreads of the internal troubles, you will find it harder to entice quality people to work for you.
Hiring and training expenses are significant
Advertising a job opening through onboarding the new hire requires significant resources. The best way to control these expenses is to not hire as often by getting it right the first time.
Why not merely hold on to the wrong hire to reduce turnover?
Unfortunately, keeping this employee is not the answer. Statistically, it almost doubles the damage. A recent study found that 60 percent of long-term, contributing employees could spot a bad hire by their inability to work well on a team. The result was poor teamwork, a drop in productivity, less productivity, and weakened work culture.
You can reduce or eliminate bad hires
If your hiring process keeps resulting in one hiring mistake after another, stop relying on it and put it in the hands of professional recruiters. With almost forty years of experience and a reputation for excellence, Select Staff can be the answer to your costly bad hires.
We are a leading staffing agency located in Dallas, Texas, specializing in the placement of light industrial, office, clerical, accounting, and finance personnel throughout the state. Contact us or visit one of our locations. If you’re ready for a different approach to staffing, work with the experts at Select Staff.