There is one word that universally makes any organization’s human resources department, sales and marketing teams, operations personnel, and executives shake with fear. Turnover. The cost of bad hires add up quickly. The good news is that they are preventable.
When a new employee is not the best fit for a job position or for the overall company, businesses say it is bad luck. But is it really bad luck or something else? We get it, you didn’t hire the right person, so it happens.
However, when new hires are continually not working out over the long term and your talent turnover numbers are high, stress ripples throughout the entire organization. It impacts a lot of parts of the company. For example, profits are lost, employee engagement is severely damaged, and business growth is stunted.
What’s the impact of a bad hire?
Employee turnover affects almost every aspect of a business. It includes tangible and significant costs such as squandered payroll expense, litigation, wasted training dollars, wasted onboarding dollars, and much more. Yet these tangible costs, substantial as they are, really just represent the tip of the iceberg. It’s essential to find out why bad hires are occurring consistently.
Hiring mistakes hurt morale, productivity, customer relationships, and brand image. If your company earns the reputation of being a revolving door of new hires and fires, your chances of attracting talented job candidates are greatly reduced. It impacts the company’s bottom line.
How can company’s fix the mistake of hiring the wrong person?
The simple answer is that extra effort produces exceptional hiring results. Some ways to fix the problem include presenting your brand authentically on social media, conduct thorough background checks, and writing accurate, detailed and exciting job descriptions.
What’s the real cost of bad hires and how to stop it?
For more on this topic, check out the infographic below. Learn what bad hires cost your business and some tips on how to prevent it at your organization.
This infographic was created by TourchGroup.