Recruiting isn’t always the easiest process. Not only can it take time, but it can also be costly...
How bad hiring affects your business and what you can do about it.
While great employees can make your business, bad employees can break your business. Well, it might not be literally, but when you hire the wrong employee, it can quickly spiral down to a loss of productivity, a financial hit, and a negative impact on the company culture -- in short, an ideal recipe for disaster.
As technology is evolving, the demand for niche-skill employees is rising. Today, companies are at “War for Talent,” where every employer is trying to scoop the best employee from the job market. What happens when you make a bad hire in such a highly competitive job market?
The United States Department of Labor mentions the cost of a bad hire can be up to 30% of the employee’s salary for the first year. If you’re a large enterprise, it might not be an alarming number, but if you’re a small or mid-sized company, this can mean a lot of money, enough to hit your bottom line. And it’s not just the bottom line that is affected by the bad hire.
You lose on productivity too. In a study, 34% of the CFOs mentioned that 17% of their time is wasted supervising poorly performing employees along with the loss of productivity.
Considering a standard workweek, it can be translated into a full workday!
If you’re hiring for a very niche-specific role or a leadership role, the cost can be as high as $340,000 in total cost. That’s quite an amount! Still, making a bad hire is not uncommon.
The Great Resignation has continued to dominate headlines and stun business leaders as turnover reaches new highs. A record number of people are quitting their jobs, and companies now have to navigate the ripple effects of the pandemic. It is more important than ever for companies to re-evaluate hiring right and retain talent.
And amidst the COVID-19 pandemic, bad hires can take longer to replace, leaving aside the cost involved.
So, what can be done to avoid a bad hire?
Many companies don’t know what they are looking for, which means they can’t effectively “measure and evaluate candidates.” And some companies rely heavily on technical skills needed for the role when hiring and focus less on competencies required and behavioral requirements that measure
- How candidates would perform as an employee
- Identify what behaviors they need from candidates in the future
- Identify ways to recruit, develop and retain employees
This means that employers struggle to find suitable candidates for their open roles, which is the worst possible solution for candidates and companies alike.
But how can companies correct this and find top candidates with the right behaviors?
A job description (tasks and duties) will tell us what we want someone to do. But companies need to establish and identify
- Candidate behaviors you want in a role.
- Candidates who are best suited to the role.
- Set up internal benchmarks and competencies for every role in the company.
Our research and hiring process is so refined that 96% of the candidates we place are still in employment 12 months later (our clients tell us this retention rate is considerably higher than that experienced when using other recruitment businesses).
- We conduct in-depth market mapping, identifying all potential target candidates currently working in the industry and sharing these details with you. We don’t rely on existing data.
- We remove any risk from the process by offering a 100% money-back guarantee if a candidate leaves within one month and a free replacement service up to 12 months.
- We spend considerable time on our pre-screening process, so you’ll only receive approximately 3-5 candidates that are perfectly suited to the role, reducing the time required for you to complete the hiring process.
- Using our unique FullCandidate platform, reviewing our candidate shortlist is fast and easy, delivering comprehensive, online profiles that can easily be shared with your colleagues anywhere in the world.
- We specialize in placing technical people, so we fully understand your requirements and deliver outstanding candidates to you, typically the people currently working for your competitors.
- We have a strong foundation in the US market and have strategic partners in every state.