The Impact of a Hiring Mistake

Nobody wants to hire the wrong person. You’ll spend time and money on training and trying to help them fit into the organization. Often, that time and expense are wasted because the individual will leave your organization soon –voluntarily or otherwise – and you’ll be forced to find a replacement. And that’s not even the real impact of a hiring mistake. The Society for Human Resource Management suggests the cost of turnover can run as high as $150,000 for an accounting professional. Does that figure seem high? Of course, the financial costs – salary, recruiting expenses, severance pay, signing bonuses and relocation – are not too difficult to quantify. It’s the collateral damage to productivity, morale and your reputation that might surprise you. Productivity Hiring, training and managing the new staff member takes time – time that would otherwise be spent on essential business tasks and operations. When you hire the right person, that initial loss of productivity ends up paying dividends in the long run. But hiring the wrong person may mean you’re spending more time on training, dealing with personality conflicts and correcting unacceptable behavior – just to start all over again with someone new a few months later. Morale While you’re spending time trying to coach an bad hire into acceptable performance, what is the rest of your team doing? The classic management guide First, Break All the Rules by Marcus Buckingham and Curt Coffman, makes a point that paying more attention to struggling employees and less attention to your stars alters the behavior of your top employees. Those top performers may start doing less of what made them stars in the first place. Even if their behavior isn’t impacted, their attitude might be. Often, a bad hire leaves your good employees with the burden of extra work to make up for the poor performer. That added pressure puts you at risk of losing your star performers, too. Reputation Your business’ reputation is key to attracting the talent you need. But a hiring mistake can put your credibility at risk in more ways than one. Your team Read More »

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