Every experienced business owner knows the pitfalls of hiring the wrong candidate. It’s the primary reason they turn to labor staffing solutions for assistance in the hiring process. A bad hire requires them to find a replacement quickly, all the while draining time, energy and resources from the business.
If you bring someone on board who ultimately does not work out, you’ll find yourself in a quandary: Do you look for a spot elsewhere in the company that’s a better fit or do you cut them loose? There’s always a chance they could become useful doing something else, but the odds are against it.
In either case, it’s going to cost you. Here are some of the ways it hurts:
It slows productivity
When you hire the wrong person, your supervisors spend more time on training. Poorly performing workers can hurt an entire department. Every time a manager is pulled away from regular duties to assist an underachieving worker, productivity takes a hit. Studies have shown many managers are spending up to 17 percent of their time on employees who are not performing up to par.
There can be steep financial costs
A bad hire can cost your company thousands of dollars. First, you’re paying a worker who isn’t performing up to the requirements of the job and you are probably paying for extra training to boot!
If you end up firing the employee, your unemployment insurance costs will rise (depending on the state in which you do business), or you could be responsible for severance pay. Either way, you must find a replacement, which is an expensive process.
Employee morale suffers
Bad hires often don’t get along with their co-workers, and the team can become fragmented. Morale can deteriorate, and some of your employees can become disengaged. It’s also hard to stay positive when one of the team members demands an inordinate amount of attention. Your managers end up spending the bulk of their time fixing mistakes from the bad hire or helping with additional training, while your good workers feel ignored and dissatisfied.
Your reputation might be damaged
If a bad hire is causing turmoil in your company, the bad experience it might be creating for your employees could become common knowledge quickly. With the internet and social media, there are few secrets. People looking for jobs can easily find out if there’s trouble in the workplace—based on reviews and posts from your own employees.
Keep in mind that current and potential customers also have access to this same negative information, so it’s a good idea to monitor your reputation and weed out any hiring mistakes which might be damaging it.
Are looking for ways to improve your industrial recruiting processes?
Work with a staffing company in Houston that has a reputation for success. The industrial recruiters at DHR Staffing in the Houston Metroplex can match you with workers who are skilled, trained and thoroughly vetted. Contact the recruiting experts at DHR Staffing today to learn more.