3 ways the wrong hire costs, apart from in rands and cents
What are the real costs of hiring the wrong person? Most of us think in terms of rands and cents first, but the truth is that this is just the start.
According to an article published by the Association for Talent Development (ATD, formerly ASTD), the cost of a bad hire has at least 3 more components.
- Team morale suffers
When you hire someone who cannot perform in role, for whatever reason, other employees invariably end up picking up the slack. That could mean lending a hand to sort out problems that arise, or picking extra work to ensure larger goals are achieved. This can negatively impact employee morale, especially if employees already have a heavy workload.
- Productivity declines
It takes time for a bad hire to exit the company and more time to find and recruit another employee. Add that all up, plus the additional pressure and annoyance for other employees taking the slack, and you get the picture in terms of how productivity can suffer overall. Your company is vulnerable to lost revenue and missed opportunities. Important relationships for the business may also be at risk with high turnover of staff.
- Managers lose time
Have you ever managed or supervised an employee who is not performing to expectations? You may be coaching them in role and providing the necessary training so that they can perform at their best, whist at the same time checking work, correcting mistakes and even redistributing tasks not completed. It takes a lot of time.
If you have hired the wrong person for the organisation or role, you’re diverting important time away from other employees, projects and goals. It all adds up.
You can avoid this, says Kay Vittee, CEO of Quest Staffing Solutions, in her SkillsPortal article. Here’s how.
Be specific about what you are looking for. In addition to the job description, profile your ideal candidate by defining the traits you need to excel in your organisation. You can involve the rest of the team in this exercise too.
Ask the right questions. Use behavioural questioning techniques that are based on real experience. Don’t be afraid to probe the answers they provide. Make sure you understand what the candidate is trying to say fully. The interview is a great time to get to the bottom of what’s going to work well. Encourage them to ask questions too. This can tell you a lot about the candidate.
References are important. If possible, call the references so that you can chat with them. This makes for a much more interactive assessment of fit.
Social media provides useful information. Have you checked out what your candidate is doing online? The platforms they engage on, what they say, who they are connected with, the things they like and share on LinkedIn, Twitter and Facebook all build up a footprint of the person who could be your next employee. Are they right for your organisation?
Lastly, make sure your onboarding process supports them once they join, says Vittee:
‘Keep in mind that companies with a strong onboarding process improve new hire retention by 82% and reported a more than 70% increase in productivity according to research conducted by the Brandon Hall Group.’