Why hiring the wrong person is costing you more than you think
Updated: Oct 26, 2019
Let’s look at a few reasons why you hired the wrong person. Maybe they were recommended to you as an All-Star, old friend from college, or they had a sparkling resume. You, as the hiring manager are under pressure from higher up and let’s face it, you’d rather fill the position than have to explain why the role still isn’t filled to your entire leadership team. So you settled, maybe they didn’t have the degree or the niche experience. Worst of all, they didn’t fit the culture. But you hired them and now here we are.
LET’S CHECK IN:
Great! You’re in either the HR department or are the Hiring Manager. You have higher-ups breathing down your neck and you decided to pull the trigger. Not literally… but you extended an offer. It’s 3 days from the end of the month and you as the Hiring Manager hit your monthly quota. You wipe your hands clean, the candidate has started, but, at what price?
THE ACTUAL COST:
It’s estimated that hiring a bad employee can cost the company almost 2x that person’s salary! This means if you hire someone at $75,000 a year it can be costing you almost $150,000. This figure compiles all the time spent training, on boarding, office supplies, benefits, and much more. If that still isn’t convincing enough, think about all the lost revenue potential. Maybe you hired a lazy, non-motivated sales rep that missed losing a big deal!
A productive team can really take a company to the next level. This can also be a highly overlooked area in which a bad employee can be identified. Maybe they are hitting their numbers and signed a few new clients. That’s great! But, what you’re not seeing is they are constantly interrupting other employees, stepping down on other team members, showing up late, and creating a toxic working environment.
REMEMBER FOR NEXT TIME:
Go with your gut
We know time usually isn’t on your side but if you don’t feel 100% confident you’re interviewing the right candidate, don’t hire them!
Do your homework
Why does this candidate want to work for you? Were they referred by a friend, stumbled across your job posting, or maybe they are about to get fired and looking to get ahead of it. Understanding a candidate's WHY is so important.
Don’t skip the reference checks
Don’t allow anyone to be a reference. Ask your candidate to provide you at least 3 references. Use the rule of 2 up 1 down. This means 2 of the references should be from previous managers or someone they reported into and 1 should be someone that they managed or someone who reported into your candidate. This will give you a much clearer idea of who you are about to hire.