Over the years, researchers have given different opinions regarding the exact cost involved in hiring the wrong person. Undoubtedly, any organization bears an enormous cost for hiring talent not fit for them. According to a survey by The Australian, a wrongly hired talent can cost a business 2.5 times the employee’s salary. This means, that when you hire someone for a role that demands a salary of $50,000, you will need to invest $125,000 as additional costs, which will eventually not provide any result. The Australian survey also claims that this multiplier might increase for senior-level positions.
Apparently, when you hire an employee who is not well suited for the job, it not only affects the finances you have invested but also the morale and productivity of your organization.
See Infographic: How much does a wrong hire cost to a Business?
So, when do we say that we have hired incorrectly? There are multiple elements involved right from the hiring process to the entire training period. Some are as follows:
- Candidates are selected just on the basis of the length of experience
- Considering the candidate based on his personality
- Ignoring the work background of the previous employer
- An unclear vision of profile for a particular prospect
- Inadequate understanding or training program being given to the candidate
Now, let us say you hired the wrong candidate. What would happen in such a scenario? What are the unexpected circumstances that can come up for you? How does it affect your company? How can you go about hiring the right talent?
Waste of Investments
When any new employee is on-board, it demands certain investments. This often includes an interview process, specialized certification classes or programs, and on-the-job training. All of these activities are necessary for making a new employee accustomed to your company’s work culture and expectations.
If there is a wrong hiring decision, these efforts and investments are wasted and the organizations might have to spare valuable resources to go through the whole exercise again for replacements.
Lack of Productivity
When it is determined that a new member is not the right fit, the managers end up spending more time training them. This not only hampers the productivity of the new employee but also adds to the existing responsibilities of the managers.
Moreover, when a new hire is inefficient, the reduction in work output affects the business. This leads to companies spending on other resources to meet their organization’s productivity standards.
Lower Employee Morale
A misfit talent results in lowered employee morale as the rest of the team has to put in more effort. It can cause valued employees to become dissatisfied or disengaged. Therefore, while the companies try to fill the gaps the damage is already done. In addition, dissatisfied employees mean unresolved conflicts and added stress to the human resource departments.
Also, when a talent feels like a misfit in an organization they fail to perform at their 100%.
So, How Can You Avoid the Above-Mentioned Scenarios?
Most companies and industry leaders expect the right people for different job roles on the floor. To make this possible, they keep themselves limited to registering on job portals and trying their luck browsing various profiles. What follows next, is a prolonged process of screening candidates, interviewing them, etc. but what if someone else takes care of all the processes for you to find the right talent for your organization?
TecBridge(A Gateway Group Company) can do this for you. It significantly reduces the risk of hiring the wrong person. As the consultants from our organization understand your project requirements and assess candidates before you hire them, they save a lot of your time, energy, and efforts. Also, with a shorter discovery stage, our team works as an extension of your project teams and optimizes talent acquisition.
The most effective way in which a company can avoid hiring mistakes is to invest in a proven recruitment process. Why not write to us at firstname.lastname@example.org and discuss your resourcing need?