The Cost of Hiring the Wrong Employee
Hiring the wrong employee is a costly and painful mistake, yet it occurs far too frequently. In fact, 74% of employers acknowledge that they have in the past made incorrect selection decisions when recruiting, according to CareerBuilder. Because employing an unsuitable person can be such a costly mistake for a business, it's crucial to understand how it might affect the revenue, team performance and the business.
The Cost of Mis-hirng:
On average, companies lost $14,900 on every bad hire. (HRexchangenetwork, 2020)
Recruiting never comes cheap, even if it’s hiring the right people. Hiring costs may add up, whether it's the wasted money you spent on recruiting that wrong employee, holding interviews, or the additional money you'll now have to pay to seek a replacement swiftly. A hiring manager's time and effort in interviewing potential successors could be a fortune.
The cost of mishiring is not only financial, there are a lot of unrelated financial costs such as:
Productivity loss:
Bad hires can result in a 32% drop in employee morale, and a 36% drop in productivity. (TheUndercoverRecruiter)
Hiring the wrong employee would definitely affect your team's productivity. Bad hires are mostly lazy and unproductive, they don’t align with the business goals and vision. Not contributing as much as the other team members or doing average work may slow down the business. Some effects could be less damaging than others; however, it’s definitely affecting the whole business long term.
Motivation Loss:
Investing time, energy, energy, and money in a poor recruit is disappointing since it can negatively impact internal and external team chemistry. This may occur particularly if the hire was made for a managerial or senior job. High achievers may eventually come to distrust their employer and the company's management, which might manifest as a lack of interest and low performance. This further encourages negativity, which affects the general atmosphere and morale at work. The cost of losing motivation across the board, or even within a single team is quite costly.
Damaged Reputation:
Your consumers can be dissatisfied if an employee is not performing well and not delivering on time. Even if customers receive their work on time, if it is low quality, they can end up looking for a competitor. Many clients might be lost as a result of one poor hire.
You can lose not just your current clients but also some new ones. This is due to the possibility that irate former customers may write negative evaluations about you, which might harm your reputation and hinder your ability to draw in new customers. As we all know, one of the best money drivers is referrals, if you lose that, your business may be in trouble.
How to avoid hiring the wrong profile?
In general, the answer to this question would be improving the whole recruitment process. There are many ways to do so; however, the most effective one is to partner up with an agency with industry experience and don’t trade quality for time.
Hive headhunters’ team have worked as heads of design, they understand your companies’ internal challenges and business needs. They have strong knowledge of the nuances of creative peoples’ skillsets, styles and personalities when building a solid team.
Hive specialises in finding the best profiles for the following roles:
Service Designers
UX Researchers
Project Managers
UX/Product Designers
Interaction designers
UI Designers
Copy, Content strategists, UX Writers
Business Designers, Innovation Strategists
VR / AR Designers
Book a free call now and our team will save your time and energy finding the right talents.
