Finding the right fit for a position can be extremely challenging and unfortunately, sometimes it so happens that a candidate who had all the right credentials and seemed to fly through the interview process turns out to be an unexpected problem after hiring – all sizzle no steak.
.Monetary Cost: According to the U.S Department of Labour, the literal “cost” of a bad hire equals 30% of the individual’s annual salary. A massive share of the money is lost in the selection process, itself. You will spend, on average 16-20% of an employee’s salary at this stage itself. The entire process of reviewing the resumes, conducting interviews, and training the individual along with remunerating a salary, can be a heavy expenditure. Such expenses can easily burn a large hole in the pocket of even large-scale businesses and completely jeopardize the future of smaller one.
.Time Spent: Furthermore, a lot of time is spent in bringing a candidate on board with the company. HR representatives dedicate hours, rather, days in sourcing candidates, screening through the applicants, short-listing prospective employees, conducting various rounds of interviews, and training the selected entrant. It is thus, a tedious task, with several stages that demand time and effort in large amounts. To add to the difficulty, it is not a linear process. HR managers are often left shuffling between a series of steps to hire a befitting candidate for the required role. Yet, sometimes the prolonged, industrious, and earnest labour is no guarantee of finding the perfect fit.
Performance Disparity: Unproductive workers are not only inflexible, unwilling to adapt, repetitive in their mistakes, but they also lower staff morale and set the bar low. Employee morale comprises concepts like job satisfaction, outlook, and feelings of well-being an employee has within a workplace setting. Proven to have a direct effect on productivity, as it can result in increased employee turnover and ultimately – loss of profitability.
.Cultural Damage: A wrongly hired candidate simultaneously causes collateral damage within the organization. Other than the obvious losses, poor performers are often a bad influence within the office and don’t align with the company’s culture, causing an imbalance. Tardiness, arrogance, and unprofessionalism are other complaints you might have from an inadequate hire. The damage could be tangible, intangible, measurable or immeasurable and is usually an assemblage of all.
. Time Lost: Recruitment is a series of steps, where each step requires considerable time. An HR representative will result in losing out on a month, at the least, in hiring someone. A bad hire also leads to loss of company time, due to lack of productivity which eventually engulfs the entire working space. A business simply can’t afford to spend all that time and resources, simply to fire them a few months later.
Damages Company Reputation and Customer Experience: A single bad customer service experience can turn into a reputation nightmare in today’s world of online reviews and viral social sharing. When a customer comes across a negative employee, they aren’t likely to have the kind of experience that you want your company to be known for. Instead, the level of service received is directly associated with the overall quality of your business. This is known as the halo effect, which if used to an advantage can do wonders for your company, but if not, it could create a lot of chaos for you.
So how can you avoid wasting so much time, energy and money on recruiting the right candidate? The answer is simple. To make the process easier, consider working with a recruiter. Recruiters are hired by businesses looking for employees to fill their open positions. They don’t find jobs for people — they find people for jobs. By using a recruiter, you split the workload. Recruiters know exactly what kind of talent is out there and they devote a large amount of time in making sure that the best of that lot is directed towards you. They also help you network on a larger scale while streamlining the process to hook you up with the most viable candidate around.