Are Bad Hires Costing your Business?
According to the Recruitment and Employment Confederation (REC), 85% of decision makers admit their business made a bad hire in 2017 and at least 1 in 5 'don't know' how much that bad hire cost their business.
The wrong recruitment decision can be very detrimental to a company’s development in terms of time spent and sometimes damage caused.
With this in mind, here are our five considerations for identifying and avoiding bad hiring decisions.
Bad Hires and your Business
Perceptions of a bad hire can vary considerably between businesses but it is essential to investigate what it means for your company and workforce. Considerations could include how long the individual stayed, their overall performance or how much they progressed within the organisation.
The REC states that the common characteristics of a bad hire arguably become more evident when outlining the main attributes associated with a good hire.
What are the costs of a bad hire?
Time and money spent on the recruitment process, the investment in training and the negative impact on staff morale and performance have been identified by the REC as the top three tangible costs of a bad hire.
What are the hidden or long lasting costs?
Poor recruits can contribute to higher staff turnover and lower company morale which can lead to general loss of productivity and negative impacts on reputation and employer branding.
How did the bad hire occur?
If a bad hire has occurred, consider the most recent member of staff that proved to be a bad fit for the company and look at the key stages in the recruitment process that may identify and provide further insight into how the bad hire occurred. Be prepared to challenge procedures, for example, was the job description or advertising misleading? Was the talent pool accessed too small? In order to prevent bad hires and move forward it's imperative to recognise the errors that have occurred in the past.
What action points are needed to avoid a bad hire?
Having identified what a bad hire is and how it occurred in your business now is the time to create an action list encompassing the key stages in the recruitment and selection process.
At Wild Berry Associates, we identify these as role definition, attracting applicants, selection and hiring and retention. As a successful business this is vital to understand what you do well and how you can improve.
For more information on how Wild Berry Associates can provide a completely consultative and results driven service, please contact a member of our team today!