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November 2017

Employment Mistake Woes: Why A Bad Hire Is Worse Than A Vacant Position

Retention An Issue In Your Company? Hire An HR Executive Search Firm To Help

While it's not uncommon to have regrets about hiring an employee, it's something that you'll want to avoid at all costs. And we mean that literally. A poor hiring decision is an expensive mistake. According to a survey conducted by CareerBuilder, 41% of companies said that a bad hire cost them at least $25,000, with 25% noting that it cost them at least $50,000. That can be a colossal loss, no matter the size of your business.

And that loss isn't just represented in literal dollars, either. Around 41% of employers surveyed said that their companies experienced reduced worker productivity as a direct result of their hiring mistake. Approximately 40% reported that their losses also covered time they had to devote to recruiting and training a replacement worker. While working with a talent acquisition management service can help cut down on the time you spend finding viable candidates, you'll still have to pay for these services. In addition, 36% of employers noted that the mistake had an adverse effect on employee morale, and 22% said it had a negative impact on client solutions.

Clearly, a bad hire brings down your output as well as how well your team functions and is able to serve your customer base. That's a substantial hit many businesses can't withstand.

Why do bad hires happen in the first place?

There are many factors that come into play when bad hiring decisions are made. One may be a lack of experience on a manager's part. The ability to recognize a good fit comes only with time. If you're new to the game, it's easy to overlook factors in a candidate that emerge as issues later on. Many companies find that an executive placement agency or recruiter will be extremely valuable in these kinds of circumstances.

Sometimes, bad hiring decisions are made simply because employers want to get the process over with. When you're tired of looking at resumes and calling candidates in for interviews, it's easy to downplay a skill set that doesn't quite match or a lack of relevant experience in the industry. Working with a job placement agency often allows companies to have access to higher quality candidates that are a better fit for what they need.

In other cases, a company will be desperate to fill an open position. This is never a good situation to be in. When you're in dire need of an employee, you'll be much more likely to ignore red flags and simply hire anyone, rather than waiting for a candidate who's a good fit. You might have felt that picking the best of what you had was better than leaving the position vacant. Unfortunately, that's usually a mistake for both employer and employee.

So how can you avoid making a hiring mistake?

The aforementioned CareerBuilder survey found that 62% of employers said their bad hires exhibited poor attitudes in the workplace. Around 63% said their bad hire produced sub-par work and failed to work collaboratively with other employees. This illustrates a lack of both soft and hard skills in these candidates. A professional job placement agency (for lower-level workers) or executive placement agency (for management positions) can often help employers gain access to candidates who don't exhibit these issues.

Another recent survey found that 36% of executives said that a poor skills match is the top factor that leads to a failed hire. Around 30% of executives felt that unclear performance objectives were the major contributing factor. What this data tells us that employers need to be very clear about the skills (both hard and soft) that are required for a given job and what's expected of the person who takes that position. Employers who choose to work with an executive placement agency or a talent acquisition firm often find that these candidates are not only better matches for what they need but have a more complete understanding of their company's challenges and goals.

By developing a hiring strategy, communicating information clearly, and working with an job or executive placement agency, companies like yours may be able to avoid costly hiring mistakes that can drastically impact your bottom line.