What a Bad Hire Can Cost Your Company
Making a bad hire can have a negative impact on your company at many levels. Therefore, you strive to be able to identify the top talent on your applicant pool and make the best hiring decisions, every time.
However, despite your best intentions, you need to go beyond the traditional recruitment methods if you want to improve the quality of hire and avoid the costs of potential bad hires.
What Are the Losses a Bad Hire Brings Your Company
Replacing a bad hire can cost a company on average two to three times the employee’s salary. But money is just one of the many losses that a bad hiring decision will bring your company.
Every time you bring in a new employee, your company makes many long-term investments related to onboarding and training. If you're not able to hire the best fit for a role, chances are that the new employee won’t succeed on the job and all the time and effort spent with his integration on the company is lost.
Generally, a bad hire is someone that:
- Performs poorly\n* Is unable to collaborate with team members\n* Has a bad attitude towards work \n* Has a low productivity and efficiency
Maintaining an underperforming employee impacts your business negatively in numerous ways: it can cause damage to your brand’s reputation, lead to sales loss and block ongoing projects.
How Does a Bad Hire Impact Your Company and Your Customers
If you’re not able to accurately assess someone’s future job performance and cultural fit, it’s difficult to keep the candidates that lack dedication, work ethic or conscientiousness away from your company. Onboarding someone that won’t strive for the company’s success can have big repercussions on the company culture and damage the team spirit. And it’s enough to create toxic work environments.
Consequently, bad hires have the power to affecting other employees, especially top talent. Good employees value healthy and productive work settings and have the drive to make projects succeed. If they find themselves in a situation where they systematically have to compensate underperforming team members' work, it will make them want to leave your company.
Bad hires also tend to provide a bad customer service, which directly affects your business reputation. Providing customers with a single negative experience can be enough to drive them away from your company and lead them straight to the competition.
How You can avoid Making a Bad Hire
Improving your recruitment process and upgrading it with the right recruitment software is key to hire the best talent. Therefore, you need to redesign your recruitment strategy and leverage the power of an [Applicant Tracking System](https://www.skeeled.com/ats (ATS) to deliver a modern and innovative recruitment process.
In fact, you need more than just a regular recruitment software that streamlines your recruitment workflow and stores and manages CVs. You need a solution that can help you to screen and assess candidates better and faster, so that you can hire the right person every time.
A candidate's CV often isn't the most reliable source of information and making decisions based only on a piece of paper can turn out to be unwise. However, there are great assessment tools that can be integrated in an ATS that allow you to accurately evaluate your candidates before making a hiring decision.
- Personality Assessment
Assessing personality is a reliable method of predicting future job performance. It provides you with deep insights that combined with other evaluation elements (CV, interview, etc.) will significantly improve the candidate selection.
By using an Applicant Tracking System that provides an integrated personality assessment, you can do an evidence-based recruitment, assessing each candidate’s core personality traits and whether he or she would be a good fit for a specific job and for your team.
- Pre-recorded video interview
Allowing candidates to show themselves beyond their CV, through a pre-recorded video interview, also gives you valuable additional insights that help deciding whether a candidate would be a good fit for a specific role.
Using pre-recorded video interviews ultimately gives you a better chance of identifying the top talent on your pipeline and only invite the best candidates to in-person interviews, saving time and improving the quality of hire.
Given how much a bad hire can cost a company, it’s of the utmost importance to hire the right people. Having the right recruitment tools is determinant to make the best hiring decisions.
Thanks for reading and see you next time!
Your team here at skeeled