Wrong hires are expensive – What are the three main problems?
Hiring the wrong person can be expensive. Sourcing CVs, interviewing, arranging induction and onboarding takes time and resources. According to new research, 39% of employers state that they know within a fortnight if things are not going to plan with a new hire.
The top three problems bad hires are increased workload for colleagues (50%), increased stress on colleagues (39%) and lost productivity (33%). Aside from increased stress and workload for management, other negative consequences include higher recruitment costs (32%), lost business opportunities/revenue (24%) and low staff morale (24%).
Whether organisations decide to terminate their employment or invest in training them, it will impact the company financially and cause significant disruption and stress to the existing workforce. It’s therefore critical to get it right the first time. The most common reasons for failed hires were mismatches of skills (44%), underqualified candidates (42%) and people found to be lying on their CVs (37%).
It is important to ask the right questions, thoroughly test skills and reference check. Employers should review their hiring policies to ensure they are rigorous in their hiring process.