As a hiring manager or recruiter, at times you think you’ve found the perfect candidate, only to discover you were wrong. Unfortunately, bad hires are more than just a slap on the wrist; they can cost your company tens of thousands of dollars. A survey by CareerBuilder put the cost of a bad hire at up to $24,000 for companies with more than 1,000 employees. Companies with 500–1,000 employees can see costs of up to $22,000, and companies with 500 employees or less can see costs of up to $11,000. According to statistics posted by Forbes, the cost may be significantly higher, ranging anywhere from 30 percent of the employee’s first year earnings up to $240,000. Here are four hiring mistakes that can cost you big:
1. You Move Too Quickly
On average, it takes a U.S. company 23.8 days to hire an employee. In certain situations, you don’t have time to undergo the tedious hiring and interview process. However, if you speed up the process too much, you risk skipping important steps, and you may not gather all the necessary information. You may not discover candidates’ weaknesses, key personality traits, or work ethics. A resume can say a lot, but it can also be a perfect façade.
2. You Hire Based on the Person
Remember that you are hiring to fill a certain position. While you may find an individual who would fit the culture of your workplace or who can nail an interview, if his or her qualifications don’t match the job responsibilities, you may hurt your company.
3. You Don’t Understand Problems in the Specific Role
Understanding why particular roles are vacant in the first place can be key to preventing high turnover and helping new employees thrive in their positions. Some employees may leave due to bad management, overwork with little pay, or boredom. Digging through these challenges may prevent future problems with new hires. If certain positions see constant turnover, it may be time to investigate.
4. You Skip the Onboarding Process
Never overlook the onboarding process; it is vital to the success of your company and your employees. It sets them up with the resources, knowledge, training, and organization they need to do their jobs well. By the time the onboarding process is complete, employees should feel settled in the company, confident in their jobs and tasks.
Many HR departments believe they provide proper onboarding by giving employees time to fill out documents and paperwork. In contrast, the onboarding process should take several days. It should involve not only basic hiring tasks, such as completing paperwork and meeting team members, but also training, working with mentors, asking questions, and participating in team-building exercises.
The process of finding and hiring the ideal candidate should not be taken lightly. Too many bad hires can cost your company money, productivity, and morale. By avoiding the above mistakes, you can help streamline the hiring process and focus on successfully expanding your company.
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