What is The Cost of a Bad Hire?

You go all-out to recruit the best candidates, but what is the cost when candidate selection goes wrong? A bad hire drains productivity, time, and budget.

Penny Wise, Pound Foolish

You might think that using a professional when hiring staff – especially executives – is expensive and that you can save your company some money by handling the process internally. But you need to consider all the direct and indirect costs of making a mistake and ending up with a bad hire.

Firstly, there is the direct cost of the executive’s remuneration. These salaries can often stretch the company to its limit. Then – perhaps more importantly – is the effect the wrong person can have on the company. The loss of productivity in that particular post is a massive knock, and the knock-on effect a bad manager has on the team’s productivity amplifies this. A drop in morale within a team can have months of knock-on effects.

Potential damage to your company’s image is unlimited when you have the wrong person in a senior role. Your customers, your competitors and the public can be affected. Customer dissatisfaction is the worst kind of publicity for any company.

Long-term Success

And if you thought that placing a candidate in apposition was difficult, try getting rid of one! It is not easy to get rid of someone once they have a job and they want to keep it. Firstly, you have to have valid reasoning in accordance with your state’s labour legislature. One step out of line, and you are in for some litigation. No company wants that.

Severance packages are an option but they can cost our organisation a lot of money. People know when you are trying to get rid of them and they will make it as difficult and as costly as they can for you.

It is better to do it right first time and leave placements to the experts instead of risking so much money, time, productivity and goodwill for the corporation.

Thee People Development Company

If you are looking for a dynamic offering with impact driven methods, delivering results, contact us right now: 060.656.1305  |info@peopledynamics.co.za.  People Dynamics – life coaching training through coachingcandidate selectionbursary management and entrepreneurship support

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