The True Toll of Terrible Hires
Our friend, Patrick Clark, the Co-Founder and Director of Business Development for Hyrell, stopped by this week to chat about a hot topic these days. Thanks, Patrick!
At some point in their careers, most hiring managers have probably given in to the idea of “good enough” when making a hire. When you need to fill an open position sooner rather than later, and the candidate pool just isn’t delivering the talent you need, it can be difficult to wait for the perfect hire to come along. But those “good enough” hires rarely pay off. In fact, more often than not, they become bad hires.
Research conducted by Brandon Hall Group found that 95 percent of companies admit to recruiting the wrong people each year, and more than 33 percent of organizations reported they were unaware of the cost of bad hires.
“Today, the cost of a bad hire is much less of a recruitment metric and much more of a business metric,” said the researchers.
Recruiters and HR teams understand the impact of a bad hire, but when a company is in growth mode, with a focus on filling positions as quickly as possible, it’s difficult to enforce hiring practices that deliver the best results. That’s why it’s important for HR and recruiting professionals to understand the costs as well as the negative impact a “good enough” hire can have on an organization.
Here are three consequences of a “good enough” program:
The cost of replacing a “good enough” hire isn’t cheap—there are the hard numbers (salaries, recruiting, etc.), but there’s also the costs associated with missed business opportunities, loss of customers, and a weakened employer brand. These costs take a toll. To reduce turnover rates by making great hires, look at automating your hiring and recruiting process to create a strong candidate experience that provides you with the information you need to make well-informed hiring decisions.
When a “good enough” hire becomes a bad hire, there’s more likelihood that you’ll see ethical issues arise in your workplace. Whether it’s sexual harassment, conflicts of interest, or not upholding safety standards, you’re putting your bottom line at risk with a bad hire. When—and if—inappropriate behavior occurs, it’s crucial that you’ve documented legal and regulatory compliance.
During the hiring process, managers are looking for a culture fit—someone whose personality and style complements their team. While you can train a new hire on the technical skills required, it’s impossible to change an individual’s personality. When you make a “good enough” hire, you’re putting your culture at risk if that person doesn’t uphold the mission and values of your organization, or has a style that conflicts with the team. During the screening process, make sure that you’re assessing and paying attention to demonstrated behaviors and how they will or won’t work within your organization.
Making “good enough” hires may be the status quo for some hiring managers or companies, but it doesn’t have to be. HR teams must determine ways to fill positions by using a standardized process that supports recruiting, retaining, and engaging great hires. Using a system to facilitate the hiring process, as well as legal compliance, can help organizations avoid the challenges that “good enough” hires can create.
To learn more about the toll that terrible hires can have on your organization, join us on September 20th for a webinar with Compli’s Toby Graham titled “Calculating the Cost of ‘Good Enough’: The True Toll of Terrible Hires.”
Calculating the Cost of
The True Toll of Terrible Hires
Tuesday, September 20th,
2pm ET Reserve Your Seat