By: Sheila Birnbach
A new study from CareerBuilder found that more than half of the companies in the United States have been affected by a bad hiring decision, with a broad range of negative effects reported by the hiring managers and other HR professionals who participated in the survey.
“Making a wrong decision regarding a hire can have several adverse consequences across an organization, ” said Matt Ferguson, CEO of CareerBuilder, in a press release announcing the survey results. “When you add up missed sales opportunities, strained client and employee relations, potential legal issues, and resources to hire and train candidates, the cost can be considerable.”
To get a full view of the total cost of a turnover, including many “hidden” costs that do not appear on a financial statement, see Birnbach Success Solutions’ “Calculating Turnover Costs.”
Among those who participated in the survey, lost productivity was the most frequently encountered issue associated with making a bad hire. Almost 40 percent said they had experienced that problem. The negative impact on employee morale and the cost of recruiting and training a new worker were also highlighted by many respondents, with each being cited as a problem by more than 30 percent of respondents.
Ferguson said he sees evidence suggesting that a growing number of employers are starting to wait “longer to extend offers post-recession, as they assess whether a candidate really is the best fit for the job and their company culture.”
While many hiring managers would doubtlessly like to be able to take more time to get to know each individual candidate who is interested in a position before deciding to extend a formal job offer, this is not always an option. Despite the risks involved in hasty hiring, if an organization simply needs more workers as soon as possible, then the hiring process may need to be completed quickly.
Organizations that are concerned about the risk of hiring candidates who won’t “fit” in their new positions may want to contact an HR consultant from Birnbach Success Solutions.
We can provide hiring training to equip your organization’s managers with interviewing skills and other tools to enable them to hire the right individual for the job, the first time. In addition to securing top talent for your organization, this will help managers avoid the frustration and other negative effects that come with attempting to reshape or terminate a poorly suited hire.
Interested in protecting your company assets by mastering the hiring process? Check out Sarah Sheila’s excellent CPE webcasts, and learn from the author herself!
Sheila Birnbach is the owner of Birnbach Success Solutions (formerly G B Associates, Inc), which has become one of the foremost consulting firms enabling organizations and individuals to achieve peak performance. Birnbach Success Solutions works with small and mid-sized organizations to attract and retain great employees, offer superior customer service that sets them apart from their competitors, and build cohesive teams.