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How to Avoid the Cost of a Bad Hire

Avoid Cost Of Bad HireA bad hire. Just the thought of it can make a hiring manager take a deep breath. More troubling than ruining a manager’s solid track record, bad hires cost companies money – sometimes a great deal.

But how much? Here are a few obvious costs:

  • The cost of your recruiting team, whether that’s an internal resource or an external source
  • The cost of time spent by the hiring manager, HR representatives and others involved in the process
  • The costs associated with background checks, standardized tests, onboarding, etc.

And that’s just the start.

Hidden Costs

It takes a company an average of three months to find, hire and onboard someone. With a bad hire, that three months is wasted and the clock is reset for another three months. At the six-month mark, if the right person was hired the first time, your company would have already had three months of productive output from the hired position, not to mention the added positive effect on the entire team. Ouch.

If the new hire is integral to a new project, the loss of time escalates the impact exponentially because the cost of the delayed project negatively affects the budget. Within three months, the right hire could have finished one or more projects, helped create a marketing campaign, developed the software code needed for your critical application and so on.

Our Advice: Communicate!

The best way to avoid a bad hire is clear communication between everyone involved in the hiring process. That means having a close working relationship between the hiring manager and his or her team, the recruiters (internal or external), and any and all executives who ultimately will sign off on the new hire.

When these individuals don’t communicate with each other well – and we’ve seen this time and again – companies can miss out on an ideal candidate because of a silly reason, whether that’s a small delay in HR approvals or a minor gap in a compensation package offer. Don’t let this happen to you. Work to ensure all parties communicate openly. When you do that, your chances of getting the right person into the job increase greatly.

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