How Much is a Bad Hire Really Costing You?

Hiring the wrong candidate can have a major impact on your company’s budget and bottom line. Beyond salary, there are additional costs incurred in the hiring process such as recruitment expenses, on-boarding costs, and outfitting your new employee with a uniform not to mention proper training. The fact is, the risk behind hiring the wrong person is far greater than the minor cost behind utilizing a professional service to find the right person for you and demolish the risk of a bad hire

Studies estimate the hard cost of a bad hire to be between 1.5 to 3.5 times their annual salary. This of course, only takes into consideration the numbers that are tracked and measurable. For instance, if your bad hire has a salary of $50,000 a year, the real cost to your organization is more like $75,000-$175,000.

That’s why selecting the right candidate the first time, is crucial to protecting your hiring budget. Partnering with a qualified staffing firm can ensure you don’t run the risk of over-spending on an unqualified employee. Our recruitment professionals spend each and every hour of their day investing in the hiring process of our trusted customers. Not only do we care about putting someone in the position, but we care about putting the RIGHT person in the position. We want to find a good job for our candidates, and we want to find a good candidate for our customers. Working with a staffing agency who cares can be the best investment you can make in your business.

Along with the financial costs of hiring the wrong person, your organization can also greatly suffer in productivity. The cost of an unproductive employee can take a toll on even the strongest workforces and lead to loss of efficiency amongst your entire team.

On average, it takes about 52 days to fill a position and another 5-6 months for a new hire to reach their full level of productivity. That’s the better part of a year wasted on an unproductive employee who wasn’t the right fit for their role in the first place.

Also, when a disengaged employee isn’t reaching their full potential, it ends up putting extra pressure on your good employees. Having to pick up the slack from a bad hire who’s not pulling their weight, will eventually cause your key players to burn out.

Taking time away from your business to focus on a bad hire is a completely ineffective use of your time. Employee productivity is essential to running any business, and that productivity begins with you. Our staffing firm takes the time to go through the entire hiring process until only the best of the best remain, leaving you the time you desperately need to run your business.