The Unforeseen Costs of a Bad Hire

March 15, 2019

Making the wrong hiring decision isn’t just frustrating and stressful – it can have a major impact on your bottom line. Bad hires, whether they don’t have the necessary skill sets to perform the job or simply lack the right attitude or work ethic, can have a widespread negative influence you may not necessarily realize until it’s too late. Learn more about the unforeseen costs of a bad hire – and what you can do to prevent it:

The high costs associated with bad hires are expansive, and include:

Replacement Expenses
From the cost of recruiting for a new employee (such as agency fees and advertising costs) to the actual training of the new employee once hired, the replacement expenses can add up due to a bad hire.

Morale
Even once a bad hire is gone, their negative influence may linger in the form of lowered morale for your current team. This can result in decreased job satisfaction and engagement and cause your company culture to take a hit.

Productivity
Bad hires can cause productivity to drop significantly, both during their employment and once they’re gone. Current employees having to clean up the bad hire’s mistakes, as well as the learning curve for their replacements to acclimate will cause the drop in productivity to take a while to improve.

Reputation
If bad hires give subpar customer or client service, it can damage your company’s reputation in the marketplace. The reputation hit may not be confined just to the company – a series of bad hires can also damage your reputation as a manager, making colleagues question your judgment.

What can you do to prevent bad hires?

Make the decision-making process more objective
Take measures to remove any subjective judgment calls during the hiring process when evaluating candidates. Avoid “going with your gut” and instead, develop a set of criteria against which to assess candidates.

Preview their performance without commitment
Often you only have a candidate’s resume and interview to go by when making your decision. What they say they can do, versus how they’ll actually perform, can be vastly different. Alleviate this issue by previewing their performance without commitment, such as by implementing pre-employment assessments or having them do a small trial task.

Get outsider perspectives
Bring in reinforcements to help you view candidates in a fresh light. Getting outsider perspectives from a third party (e.g., working with a staffing company), gives you the opportunity to see candidates in a different way. A staffing firm’s expertise may allow them to see red flags you may not have otherwise spotted.

 

Eliminate the Risk of Bad Hires
Feel more confident in your hiring decisions by teaming up with PTC’s team of recruiting experts for your hiring needs. For nearly 30 years, PTC Recruiting, a division of Bay Talent Group, has been collaborating with companies across sectors for their accounting, finance, and administrative staffing needs. Our industry expertise, combined with our deep passion for truly understanding and fulfilling our clients’ needs, has led to our record of success in placing the right candidates. Contact PTC today to discover how we can help you with your finance and accounting hiring needs.

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