Determining the Cost of a Bad Hire
Making a poor hiring decision can affect your bottom line. But what exactly is the financial cost of a bad hire?
Photos & Slideshow
When you’re looking to fill a new position, you’re going to look for qualities that will ensure you’ve hired the best person for the job. Maybe it’s past experience, skills on a resume, the ability to problem solve, or even how well a person fits in with your company culture.
By the time you’re ready to make a decision, you hope you’ll have a few good candidates to choose from. The only hurdle left is to choose the best of the best.
But what if it doesn’t go quite that way? What if you’re at a loss for really superb candidates, or worse, have to choose between hiring someone who isn’t right for the job and continuing the search, going understaffed for weeks or even months to come?
It’s a rough time for the industry in terms of hiring and retaining good employees. You need smart, passionate, tech-savvy people and they’re out there, but they might not know much about the AV industry or how to get started.
We know it’s tricky, but there might be something worse than being understaffed. Hiring the wrong person can be costly and have dire consequences for your firm, potentially even affecting your bottom line.
RELATED: How To Better Ensure You’re Hiring Good People
Think about it. What are the factors that determine the cost of a bad hire?
- Loss in productivity
- HR costs
- Interviewing costs
- Training costs
- Relocation costs
- Employment ads for a new hire
And that’s not all. In worst-case scenarios, bad hires can decrease sales, damage client relationships and hurt employee morale.
The Accounting School Guide released an infographic explaining that the average cost to recruit, hire and train a new employee is approximately $4,000. The difference between going with the mediocre candidate and waiting a couple more weeks could in fact be pretty significant.
Go inside our slideshow to learn how to protect your business from the negative effects of a bad hire.
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