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2 min read

What’s the Real Cost of a Bad Hire for Your Business?

What’s the Real Cost of a Bad Hire for Your Business?

A bad hire can – and often does – have serious consequences for an organization’s success. For smaller businesses in particular, a five-figure investment in the wrong candidate can result in a threat to the existence of the business itself. Bad hires not only reflect negatively on the people involved in the decision-making process but may also result in a decreased reputation for the company. Most importantly, hiring mistakes can result in irreversible financial costs and prove to be much more devastating than most people initially think.

Taking a closer look at the negative effects of bad hires can help employers minimize standard mistakes that drive away good employees:

The Multiple Effects of Bad Hires

  1. Negative Impact on Other Team Players – When one employee is underperforming, others often have to work harder to compensate. They eventually resent the under-performer and morale suffers as a result. This lack of motivation ultimately drives away employees who can drive your team to success.
  2. Loss of Valuable Customers – Since low-performing employees are less likely to provide quality service, they are more likely to upset customers as a result of inadequate or ineffective work. A single negative interaction has the potential to drive away the customer and eventually impact the company's brand and reputation.
  3. Waste of Valuable Time and Energy – Apart from draining time and focus from management, a bad hire invariably proves to take more than they contribute. The manager is often stuck providing corrective feedback, micromanaging, and wasting time trying to get the employee to meet minimum expectations. As a result, there is less time left over to coach and develop other team players.
  4. A Bad Reputation – A bad hire negatively impacts the company's reputation, especially if the employee is working with clients. After all, your employees represent your company and have the potential to make or break the brand image. Furthermore, other team players may also begin to doubt the management’s ability to make smart decisions.
  5. Financial Impact – The costs of recruiting, screening, onboarding, and training a bad hire often run into thousands of dollars. There are other real-time costs involved such as loss of sales revenues, low customer acquisition or retention, and low productivity rates.

READ MORE: Leverage Employer Branding to Attract a Focused Candidate Base

Minimizing the Likelihood of a Bad Hire

A lackluster team of employees can affect more than just the bottom line, as bad hires negatively impact efficiency, performance, and culture. Disengaged employees not only cost customers and business opportunities but also drive away top performers from the competition. Well-structured job descriptions, streamlined recruitment processes, and trained interviewers can help prevent costly mistakes in talent acquisition. Taking the time to identify an ideal candidate and working with a staffing company with a proven track record of finding quality talent can also significantly improve your success at finding top-performing employees.

At nTech Workforce, we help reduce the likelihood of bad hires by providing best-fit candidates for your open positions. As an ISO 9001:2015 certified company, we maintain a consistent focus on quality improvement and providing better solutions for those we work with. Contact us for fulfilling technical, business, and administrative IT staffing requirements.

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