The Cost of Bad Hires How to Avoid Them

The Cost of Bad Hires How to Avoid Them When it comes to  hiring a new employee, pressure is well and truly on to fill the position quickly. However, by rushing the process, chances are you wont  find the best candidate for the job and a bad hire can have a series of negative implications for the organisation. Though there is always an element of risk when hiring a new member of staff and you can never know for sure whether someone will be the perfect fit for a role before they start, making a hiring decision should involve a lot of consideration. Not only can hiring the wrong person  cause a disruption among the team, but it can also have sever financial repercussions. Next Generation have put together this video which outlines  the true cost of a bad hire, from the salary, to lost business. The financial cost The average cost of a bad hire is 30% of the employees first year earnings. 10% of sales opportunities are lost. 27% of UK companies said that bad hires cost them more than £50,000 The effect on productivity Hiring the wrong person can cause a 36% drop in productivity. Hiring a replacement is time consuming, causing 40% lost time, recruiting and training  the new person. The cultural damage It can disrupt the  team dynamics and has potential to cause a 32% drop in employee morale. It can also be damaging for client relationships. How to avoid a bad hire Thorough preparation: Write a candid and detailed job description, so that candidates know exactly what the role entails. Be prepared to dedicate time to making the right hiring decision. Effective interviews:  Assess the candidate against specific criteria that is essential for the role your are hiring for. Evaluate not only their skills and experience, but also whether theyre a good cultural fit for the company. Psychometric tests:  18% of companies currently do psychometric tests and they could be the answer to finding well suited candidates. Related:  What Could a Bad Hire Cost Your Company?