How Much Does Hiring the Wrong Person Cost Your Business?

Finding a new employee is a substantial process that requires a lot of time and resources from multiple people within your company. From posting an opening to sourcing candidates, holding interviews and making a hiring decision, it’s a lengthy process – and one you want to yield the perfect addition to your team. When that process doesn’t produce the right employee, what should you do?

Before you decide to let go and leave any part of the process up to chance, keep this in mind: both replacing a poor-performing employee by going through the hiring process again and keeping a poor-performing employee in their position can cost your business in the long run. Take the time heading into 2019 to think about how to improve your hiring process. The recruitment experts at Executive Alliance can help your organization find the right people across numerous industries.

How much will it cost to start over if you make a mistake?

Factor in the total cost of the hiring process, from publishing the job posting to the end of the training and onboarding period. Include the cost of transportation for interviewees, the cost of the interviewer’s time, the cost of background checks and reviews, and the cost of the salary negotiation process. If the candidate leaves before the end of the year and you need to go through the entire process multiple times, think about how this will impact your annual budget. Finding the right employees the first time reduces costs in many areas throughout the hiring process.

What is the impact of keeping a poor-performing employee on your team?

If you decide not to hire a new person and retain a poor-performing employee for a few more months or years, could their poor performance cost your business more than it would cost to hire a new candidate? Factor in the salaries and time spent to help your struggling employee, the cost of any expensive mistakes they may make, and the cost of educational investments or tuition reimbursements the company may provide.

What can you do to make a better hire next time?

If you choose, hire, onboard and train a candidate who leaves in a few months, you’ll experience some financial outlay. But the more you learn, the more likely you’ll be able to find the right person the next time you go through the hiring process. Did you miss an important red flag you should have seen during the interview? Did you think you could save time and resources by cutting back on job distribution and avoiding reference checks?

Working with a recruiter can return time and resources you can invest into your organization. Find a recruiter who will look out for your interests and bring extensive industry experience to the table. For more on how to improve the success of your hiring decisions, turn to the expert recruiters at Executive Alliance.

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