Bad Hires Affected Almost 7 out of 10 Companies, Can Cost $25 – $50K
So when we read about a survey of 2,494 hiring managers and HR professionals by CareerBuilder that found 69% of employers reported that their companies were adversely affected by a bad hire in 2012—with 41% of those businesses estimating the cost of a single bad hire to be over $25K and 24% saying it cost them more than $50K—it caught our attention.
We all can understand how, in this economy and hectic day and age, a bad hire can happen even in the best run, most successful businesses. The CareerBuilder poll found that two-in-five hiring managers attributed a bad hire to pressure to fill the job opening. Needing to fill the job quickly, insufficient talent intelligence, difficulty going through so many applications, unchecked references and a weak employment brand were some examples of common mistakes made due to rushing the process. Not good. Not good at all.
Why does a bad hire hurt hit your so hard financially?
A bad hire is expensive because it affects so many different aspects of your business in critical ways. In the study, some of the main reasons given for why a bad hire cost their companies money included:
- Less productivity
- Lost time to recruit and train another worker
- Cost to recruit and train another worker
- Employee morale negatively affected
- Negative impact on clients
- Fewer sales
- Legal issues
Looking at all this, it’s no wonder why a growing number of savvy companies are partnering with hiring management outsourcing specialists to make sure that their pre-hiring and hiring processes are focused on the right criteria, implemented properly and meet their long-term goals.
What is a hiring management partnership?
When you offer progressive, customized human resources and hiring services, as hireVision does, you get this question a lot. It’s understandable. What we do isn’t second nature to most business owners or HR directors/VPs, which is why they call on us.
We are not a staffing service or a recruiting firm…not that there’s anything wrong with those types of businesses. They serve a function on the outside of your company during the hiring process. hireVision works on the inside of your company by creating strategic hiring initiatives and then performing the pre-hire process on your behalf. From hourly workers to C-level positions, we have strategies and skills that will effectively and affordably attract the right people, and support your bottom line. And we are compensated for the work we do, vs. a placement which equals huge savings for your hiring budget!
Don’t wait for the next we-needed-it-filled-yesterday position to open up at your company before you improve your hiring practices. The time to do it is now. hireVision has hiring and HR outsourcing services to help you not just avoid a bad hire, but to help you develop existing in-house talent and improve your company culture in ways that increase overall performance and productivity. Our DirectView hiring management services (including our unique NetSourcing passive recruiting program) get results and our fees are based only on the work we do, never on a per-hire basis, so your company’s best long-term interests are always our focus.
For more information about DirectView, NetSourcing or any of our HR partnering services, please contact us at 610.443.0119.