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How to avoid the high cost of a bad hire

Posted on 10-25-2019
The cost of hiring the wrong person: woman calculating cost

The recruitment process demands great effort from all sides of your business. So, when that promising hire turns south, it can be costly for your entire organization. Whether you’re forced to settle for a lackluster candidate or one you didn’t have time to complete a reference check on, the cost of hiring the wrong person can be detrimental to your organization’s success.

Employee relations Employers

The financial implications of a bad hire are obvious. From wasted onboarding to lost productivity, quantifying the cost of a bad hire can be disheartening, but when you add in the intangible effect on your organization, a bad hiring decision can be enormous. Especially in a candidate’s market where you’re competing against other employers for top talent, every hiring decision matters!

The costs of a bad hire

The consequences of hiring the wrong person for the job extends far beyond financial losses. From a drop in productivity, poor work performance and attendance issues, to bad client relations and a decrease in company morale, just one bad hire can cause a ripple effect throughout your organization, leaving existing colleagues and clients feeling aggravated.

Bad hires exhibit unmistakable red flags. Watch out for these warning signs to gauge whether your new hire is actually the right fit for the job.

They might be a bad hire if they:

  • Are chronically late
  • Spend much of their work day socializing
  • Are rebellious, arrogant, assertive or argumentative
  • Require excessive training
  • Are poor communicators
  • Are always unhappy at work.

Avoiding a bad hire

Avoiding a bad hire – team meeting

Avoiding the disadvantages of hiring the wrong person is easier than you think. You might be inclined to drag out the hiring process, but that runs the risk of lowering your goodwill with candidates, occupying managers for too long with hiring tasks, and losing out on top talent to firms that are willing to hire them more quickly. Instead, the key to good hiring is putting the right practices into place, including:  

Look for warning signs on resumes

The wrong candidate may be showing telltale signs right on their resume. Pay attention to short employment periods and large gaps between jobs. The inability to hold a steady job is often telling of a candidate’s work ethic or dedication. On the other hand, resumes that are padded with excessive details of degrees, interests and hobbies may indicate a lack of skills or experience.

Ask the right questions

In the interview, focus your questions on the candidate’s skills and how they would fit into your organization. Ask questions specific to the duties of the position that require the candidate to demonstrate their knowledge. Use behavioral interview questions to gain insight on whether the applicant is the best fit for your brand by asking questions about preferential management styles, flexibility, etc.

Utilize aptitude tests
Disadvantages of hiring the wrong person - Personality test or assessment form

Interview questions may successfully help you identify a candidate with the best skills or experience, but they fail to highlight behavioral tendencies such as personality, interest and motivation, to ensure you select the best candidate for your open role. Find an aptitude test that covers behavior that matters most to the success of your business.

Don’t forget to check references!

For honest insight on a candidate’s past work history, what better resource than previous management. Perform a successful reference check by asking questions that verify work experience and behavior, while also gathering insight on the applicant’s strengths, weaknesses and how they reacted to direction and criticism.

Avoid the high cost of hiring the wrong candidate by relying on the recruitment services of Adecco. Our qualified recruitment consultants are standing by to connect you with the applicant of your dreams. Contact your local branch to get started today!

Hiring Permanent placement Recruitment

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