Tag Archives: HR

Nearly Seven In Ten Businesses Affected By a Bad Hire In 2012

29 Dec

Hiring the right person to fill a position can be a difficult decision to make, and a new CareerBuilder study shows the cost of choosing incorrectly can be high. Sixty-nine percent of employers reported that their companies have been adversely affected by a bad hire this year, with 41 percent of those businesses estimating the cost to be over $25,000.
“Whether it’s a negative attitude, lack of follow through or other concern, the impact of a bad hire is significant,” said Rosemary Haefner, vice president of human resources at CareerBuilder. “Not only can it create productivity and morale issues, it can also affect the bottom line.”
Effects of a Bad Hire
The price of a bad hire adds up in a variety ways. The most common are:
• Less productivity – 39 percent
• Lost time to recruit and train another worker – 39 percent
• Cost to recruit and train another worker – 35 percent
• Employee morale negatively affected – 33 percent
• Negative impact on clients – 19 percent
• Fewer sales – 11 percent
• Legal issues – 9 percent
Why Companies Make Bad Hires
The most common reason associated with a bad hire is rushing the decision process. Two-in-five hiring managers attributed a bad hire to pressure to fill the job opening.
• Needed to fill the job quickly – 43 percent
• Insufficient talent intelligence – 22 percent
• Sourcing techniques need to be adjusted per open position – 13 percent
• Fewer recruiters due to the recession has made it difficult to go through applications – 10 percent
• Didn’t check references – 9 percent
• Lack of strong employment brand – 8 percent
What if you make a New Year’s Resolution for 2013 to take the time to evaluate each new job opening for the skills and personality you need, carefully source and screen applicants, and be much happier with your new employees in the New Year? If you would like help improving your process, contact Don Dressler Consulting by e-mail at DonDressler1@hotmail.com or check our website at: http://www.DonDressler.com