A recent survey found that nearly three in four employers admit to having hired the wrong person for a position. Have you ever experienced this costly mistake? Hiring the right people is critical for the success of any business, and yet, so many continue to make poor hiring decisions. So, why do we make poor hiring decisions in the first place, and how can we avoid doing so in the future?
First, you need to understand the true cost of hiring the wrong person. The majority of businesses today don’t realize how expensive employee turnover can be. Hiring the wrong person can wreak havoc on your business’ bottom line. On average, replacing an employee costs businesses $15,000, depending on the person’s level within the organization.
To replace an employee in a low-paying position (under $30,000 per year), businesses can expect to spend 16% of that hire’s annual salary. For higher level executive positions, the cost to replace jumps dramatically to 213% of the annual salary.
The cost of a bad hire, however, goes far beyond the time and resources it will take to find a replacement. It can also wreak havoc on your team’s productivity and morale.
Here are just a few examples of the additional costs associated with hiring the wrong person:
- Recruitment fees
- Loss of knowledge and training costs
- Added stress on your team, resulting in lower engagement
- Unhappy customers due to compromised work quality
- Diminished reputation if the employee represents your company poorly
- Loss of the money spent on benefits, bonuses, and severances
So, how can you avoid the cost of a bad hiring decision altogether? Here are three ideas.
Keep Your Talent Pipeline Flowing
Too many businesses hire the wrong people because they are in a rush to fill a position. In fact, 43% of companies cite “needing to hire someone quickly” as the number one reason for making a bad hiring decision in the first place. Why leave something as important as hiring to the last possible minute? Make sure you have a healthy pipeline of top talent ready to get to work.
Hire for More Than Technical Skills Alone
In the tech space, it’s tempting to hire based on a candidate’s impressive technical skillset. The truth is, a person’s attitude matters just as much, if not more, in the professional world. In fact, many studies show that it’s an employee’s soft skills (or lack thereof) will make or break the future of a business.
Decide If YOU Are the Right Person for the Job
Do you have the skills to interview and hire people effectively? The first step to avoid a bad hiring decision involves coming to terms with the fact that you might not be the best person for the job. If you are struggling to identify, attract, and retain top talent, it might be time to outsource your hiring needs to an expert.
Over the last 40 years, 3Ci has placed over 5,000 consultants, deployed over 25 million consulting hours, and saved our clients over a quarter million hours and over $1 billion dollars thanks to a proven process for finding the best, most qualified tech talent. Ready to build your dream team? Get in touch with our team to learn more about how we can meet all of your talent needs.