- October 7, 2014
- Posted by: HPI Admin
- Category: Power Ideas
Industry colleague Steve Morris gives us some great advice about mishires… Bad hires are draining, both financially and emotionally. We might also add that they are very disruptive to business. Today, more than ever, it’s important to understand the system you employ to find new talent will determine whether you make a sound and strategic business hire.
Here are 10 reasons you can’t afford the luxury of a bad hire and what inevitably happens when you hire the wrong person for the job… and think how this poor hire will affect your teambuilding efforts in your organization!
- Wasting time and money defining the job, advertising for the position, recruiting potential candidates, and interviewing key prospects.
- Paying unrecoverable fees to recruiters and incurred legal fees (should the ex-employee sue).
- Wasting time and effort on existing employees during the on-boarding and training processes, as well as getting the new hire acclimated to your business.
- Turn out less work or fewer, if any, results for every dollar and hour you invested, because the bad hire did not do their job.
- Frustrate and negatively impact the workload of all the people who worked with the bad hire and who were expecting better performance; some may even disengage as a result.
- Lose opportunities to engage and sell to new and existing customers; as a result, you may sour relationships with potential new clients.
- Destroy long term relationships with key existing clients.
- Other people you employ may be led in the wrong direction.
- Lose the time invested in coaching and other attempts at corrective action.
- Depending on the job, total dollars lost in opportunities. The collective effort of others in the company could range from a few months of payroll to tens of millions of dollars in less than two years.
We agree with Steve that we don’t know any business that can afford these multiple and sometimes hidden costs of a single bad hire.
The bottom line….you must hire right the first time with a disciplined job benchmarking and job-matching process.