Making one bad hire might not seem like a huge blip on the radar. However, the negativity associated with the wrong fit could send ripples throughout your organization. This can impact your business’s bottom line in a variety of ways.
Below are several ways hiring the wrong person can impact your business.
Taking the time to find the right candidate requires resources in time spent and the costs associated with paying for ads on job searching platforms. Then, when you bring the new hire in, there’s onboarding. After all of this, if the employee isn’t the right fit, you’ll have to repeat the process again, requiring more time and money spent.
How much could this cost your business? On average, one bad hire could set a company back $14,900 — and this is for just one employee. This number also doesn’t take into consideration the costs to replace them or to retain other employees. The Undercover Recruiter states bad hires cost organizations on average $240,000.
This is a sizeable expense that not only impacts your company’s bottom line, it can affect other areas of your business as well.
Employee Morale and Culture
Finding the right fit both from a skillset and culture fit perspective benefits both the new employee and your current employees.
However, what happens if the culture isn’t the right fit? A change in culture could lead to more stress on the job for everyone involved, especially if there are clashes in communication styles or a drop in production. In turn, this could result in your employees looking for other employment opportunities.
Rounding back to the budget, retention is a key driver of hiring costs. It isn’t cost-effective to hire the best fit alone, you also want to retain your employees, as this reduces training and onboarding costs and improves employee morale since everyone fits in together; this is why company culture plays a huge role in finding the right fit.
One bad hire could disrupt community continuity. While it’s good to hire candidates who provide fresh, valuable perspectives to your business, it’s also important to examine how they fit into the department they’ll be in. Will their communication styles mesh well with others in their department? Do they share the same occupational values?
These are important considerations because you want to make the transition as seamless as possible. When there are cultural disruptions, it can impact your company and the customers you serve.
Your customer experiences are vital to your organization’s success. If you hire the wrong person in a client-facing position, then it’s your company that will suffer from a loss in sales.
The reason for this is that brands want to provide a unified approach to communicating with customers. This gives clients the perspective that everyone in the organization is on the same page — a key indicator of a well-run company. If you hire someone who doesn’t grasp or, even worse, doesn’t care about the company’s identity, this will show itself when speaking with customers. This could damage your company’s reputation irreversibly.
Driving Away Potential Hires
When prospective employees search for jobs, they have more tools at their disposal now than ever before. One way they examine whether a company is right for them is by reading employee reviews on sites like Indeed or Glassdoor. Some may also read customer reviews to gauge how well an employer treats their clients.
With these factors in mind, if you made the wrong choice(s) as it relates to hiring, employees will take notice of this. This could reflect in employee reviews of a company, as they question leadership’s decision-making abilities. As a prospective employee, reading these kinds of reviews will make you think twice about applying with them. After all, if there are inherent problems in leadership, how good can the company culture be?
Culture is everything to employees, and reputation is everything to employers. So, here’s how to hire the right candidates the first time.
Employing Best Practices
You want to take your time to find the best fit for your company. Doing this requires a concerted effort among everyone involved in the hiring process from senior and departmental leadership to even your IT team, who can use AI to help you craft accurate and engaging job descriptions.
Along with an accurate job description, you want to create benefit packages that attract and retain the best talent. This makes your employees feel valued and gives them more incentives to participate. Furthermore, when you do find good prospective candidates, it’s important to test their skills. This is where skill assessments are vital. Not only does this allow the candidate to showcase whether or not they can do some of the duties of the job, but it also tests the validity of their resume.
Lastly, you want to build a company culture that finds, welcomes, and nurtures the right fit for your organization’s needs. As part of this process, you’ll want to establish an onboarding program that clearly defines your company’s culture and how your employee(s) fit into it. This will help them transition into the role while also knowing what’s expected of them.
Ultimately, hiring the wrong employee can have a multi-pronged effect that could affect all areas of your business. By using these tips, you increase your chances of hiring the right employee the first time.