You need extra hands now, but you need GOOD help. The cost of a bad hire can be very damaging to a team’s morale and a company’s bottom line. Recruitment and hiring unavoidably cost companies money, but high turnover does much more harm than good. A bad hire can be someone who is not as experienced or qualified as they led a company to believe. Often, it’s those quick hires who are the most disappointing. But there are steps you can take to mitigate that disappointment and limit the chances of hiring too quickly. Get off the hiring merry go round and take these steps to better screen your talent, quicker.
Understanding the Risk of a Bad Hire
Most companies are not truly able to put a number on the actual expense of a bad hire. Of course, it varies from company to company and position to position. But it’s safe to say that a bad hire can negatively impact a company in a variety of ways, such as lost training costs, suck project revenue and productivity, overall compensation, recruiting fees, and even separation bonuses. The online company Zappos, for example, recently found that it was spending $100 million on bad hires. That is a significant amount of money that can ideally be reduced and controlled, given the right strategy.
Balancing Priorities: a Quick Hire vs. a Good Hire
Savvy employers aren’t left at the mercy of their hiring mistakes luckily. There are a number of steps you can take to mitigate these mistakes and reduce their overall impact on your business. Firstly, it’s essential to evaluate your hiring processes. Organizations can take steps to avoid problems in the interview stage, such as having a consistent interview strategy, following a set list of questions, and focusing the interview process with multiple tiers of interviewers (such as recruiter, supervisor, director, etc.). Having multiple people evaluate the fit and qualifications of a candidate will help to weed out the bad seeds before they become problematic.
Hiring More Proactively and More Strategically
Another common source of bad hiring choices is having to make decisions under pressure, such as project timelines or increased workload. Hiring from a strategic, long-term mindset can help your company avoid costly errors in staffing choices. Thinking strategically to evaluate your current and future hiring needs will help you to avoid reactive recruiting. Think about hiring in terms of your long-term needs. Interview candidates with an eye for those red flags that will likely result in a bad hire. Focus on retention and recruitment to ensure that the staff you do bring on board are able to invest in your company. Evaluate what experience and qualifications are actually needed to succeed within the listed job opportunity and engage with recruiters and staffing firms to help you find the type of quality talent that will meet your needs now and in the future.
Need to Hire?
For help finding and recruiting the right candidates, connect with All-Star Personnel, a top staffing agency in Nashville, TN. Our team of qualified recruiters has the well-screened talent you seek that is ready to work.