No matter the company or type of role—as a hiring manager, you have big shoes to fill. At the end of the hiring process, you will ultimately extend an offer to someone who will have a significant impact on your organization. A great hire will add value to your company culture, meet or exceed their goals, and ultimately contribute to the success of the business. A bad hire, however, can lead to decreased employee morale, missed opportunities, and unmet business expectations.
According to Harvard Business Review, as much as 80% of employee turnover is due to bad hiring decisions, and these decisions can cost companies at least 30% of the bad hire’s first-year expected earnings. However, there’s much more at stake than financial resources. While it’s challenging to truly realize the full cost of making a bad hire—these are the common repercussions organizations could experience from a hiring mistake:
One bad employee can kill the morale of many good ones. Someone who is considered a bad hire will likely be falling behind on their responsibilities—and it will be up to other colleagues to pick up their slack in order to meet company objectives. This may lead to an environment of frustration and resentment—especially if other team members are not getting compensated for the extra time and work they’re putting in. A situation like this can impact overall employee satisfaction and the likeliness of long-term employee loyalty.
Aside from turnover being an issue, the output your company can produce is going to be significantly lower with a bad hire in place. Your productivity can take a hit, especially if your other employees are experiencing burnout from overcompensating.
Interviewing, evaluating, and onboarding an employee can cost a considerable amount of time and money. If your hire isn’t working out, you’ll find yourself in a situation where you not only have to incur termination expenses, but you’ll have to start the hiring and onboarding process all over again.
A bad hire can have negative effects on your company culture and customer experience. If the bad hire is not upholding company values or quality standards, their actions can negatively affect how those you work with—including your clients—view your company.
If you come to realize that you have made a hiring mistake, know that this is a common challenge for managers. What’s most important is that you address the situation as soon as possible to avoid any additional damage. Evaluate the situation and communicate with the employee directly. Ensure clear expectations have been set, and training has been provided. If the employee is unable or unwilling to improve, you may have to consider taking steps towards termination.
While sometimes it’s tough to truly measure the quality of a hire before they begin, there are steps you can take to mitigate your chances of finding the wrong fit.
With offices nationwide and a pipeline of candidates across the country—Tandym Group can find you the right fit for your organization. Contact us to learn how we can work together.
Get our latest hiring and workplace insights delivered straight to your inbox