One of the most costly and time consuming blunders a business can make is picking the wrong person for the job. Hiring the wrong employee into the wrong position could ultimately end up costing far more than the employee’s salary.
A surprising fact: The U.S. Department of Labor currently estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. Do the math; if the average salary in your company is $60,000 and you hire three candidates that end up leaving for any reason, you have managed to lose $54,000 in one year! Never mind the amount of money you lose because you must use current employees to train new employees.
Yet the costs go beyond just money. The loss of profit is compounded by the impact of a bad hire on productivity and team morale. One subpar employee can throw an entire department into disarray. The significance of company culture has become a key focus for many employers in today’s modern work environments. The ability to self manage while requiring little guidance, and more importantly the ability to bring ideas to the table can transform a company. But a company cannot be transformed for the better with bad hires. Click to Download Whitepaper: The Real Cost of a Bad Hire