What’s the Cost of a Bad Hire?

Despite your best efforts, you can still make a bad hiring decision that winds up costing you. But just how much? It can do more than take a toll on your profits, but also your company’s productivity and employee morale, as well. Here’s a look at those costs and other negative effects of a bad hire.

The True Cost of a Hiring Mistake

According to experts, the average cost of hiring someone who’s not a good fit is around $15,000 to $17,000. This can vary depending on the position, though. For instance, a bad hire in a higher-level position can wind up costing you more than an entry-level new hire that doesn’t work out.

What Factors Impact the Cost of a Bad Hire?

There are a range of factors that go into the cost of a bad hire. These include everything from wasted training and onboarding to disruption to your existing staff and their workflow. It can even lead to increased employee dissatisfaction and turnover. That’s not to mention the cost of re-starting the hiring process to find a new candidate to fill the role.

3 Steps to a Great New Hire

A bad hire is never good for your company. But, there are steps you can take to avoid making the same mistake twice. This includes:

1. Be clear about the required skills.

Most bad hires happen when the person isn’t able to do the job they are assigned. To avoid this, make sure you clearly define the required skills that are necessary for any candidate to be considered. Give your top choice candidates a homework assignment or a skills test if necessary. Don’t forget to call references and check about their work ethic and skill level. Taking these steps ahead of time will save you from making a hiring mistake.

2. Ask better questions.

Common questions like “What are your strengths?” or “Where do you see yourself in five years?” often lead to vague answers. They don’t give you a lot of information about the candidate and whether they’re a good fit for you. Instead, get specific and ask direct questions about the role and whether they can perform it. For instance, ask “what kind of experience do you have with XYZ software?” This will showcase whether or not the candidate has the specific skills to do the job, further helping you avoid a hiring mistake.

3. Define soft skills.

While evaluating soft skills is an important part of the hiring process, it can also be difficult. Everyone says they’re a “team player” and “skilled communicator,” but this doesn’t really tell you a lot about whether they’re the right fit for the role. So ask for concrete examples to evaluate whether a candidate has the soft skills you need. For instance, if you are looking for a candidate who is a team player and collaborates well, then ask questions like “Tell me about a time you had to collaborate with someone who had a different working style than you.”

Need Help With Your Hiring Process?

Turn to OneSource Staffing Solutions. We can tackle the sourcing, screening, interviewing, skills testing, and background and reference checking so you get excellent candidates who are a great fit for your company and the job. Find out more about how our staffing services help employers!

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