When it comes to your company bottom line, the people you hire have a big impact. When you have strong employees, not only will they meet productivity goals, but also help you to expand and acquire new business. Bad hires, on the other hand, can suck the life out of a team or department, hindering work and morale, and hurting profits.
But how serious is making a poor decision that leads to a hiring mistake? And precisely how much will it cost your business?
The short answer is that it depends on the position and the industry. For instance, for a manager or executive-level employee, studies report that a bad hire can cost twice as much – or even more – of their annual salary. For those mid-range employees, those costs are closer to six to nine months of their salary. Even for employees that are in the entry-level or lower-level range, a bad hire will still cost you just under 20% of their salary. This adds up to thousands of dollars each year.
In terms of identifying the cost of a bad hire at your specific company, many unique factors can come into play. You’ll need to figure out the costs for:
- Developing the job description
- Advertising the position and recruiting possible candidates
- Screening and interviewing candidates
- Onboarding and training new hires
- Lost productivity as a result of a poor hire
- The impact on morale and the company’s culture
- Mistakes made while on the job that can affect customer relations and sales
Clearly, hiring mistakes can get expensive quickly. That’s why it’s best to avoid them altogether. One of the biggest reasons they happen in the first place is due to hasty hiring practices. A position needs to get filled, the pressure’s on, and steps are skipped during candidate vetting. Sometimes, you’ll get a great hire; but it’s certainly a gamble.
If you find yourself constantly scrambling when it comes to hiring, it could be time to bring in a staffing services firm in Miami Lakes. When you do, you can focus on other priorities, while your recruiter handles the sourcing, screening, interviewing, and verifying. As a result, you can fill roles quickly and efficiently, all with more peace of mind.
Ready to learn more about how a staffing services firm in Miami Lakes can help you?
Call the experts at Future Force. We can recruit top-quality, hard-working people who can contribute to your business bottom line, not take away from it. Contact us today to learn more or get started.
