We know bad hires are… bad.
We read articles like Robert Half’s The Costs of a Bad Hire Can Be Higher Than You Think and Fast Company’s Why Companies Make Bad Hires and learn just how costly (up to 5X their annual salaries) and common (95% of companies admit to recruiting the wrong people each year) they are.
So, clearly, we want to avoid them.
The Brandon Hall Group set out to help organizations understand what is behind bad hiring decisions and to help them reduce the costs associated with bad hires. Commissioned by Glassdoor, they conducted research on the subject and published the white paper The True Cost of a Bad Hire. In it, they discuss strategies to avoid hiring mistakes, which include standardizing the interview process, improving the overall candidate experience, and investing in employer branding.
But before they got to the “How To” portion of their report, they started by first getting everyone on the same page with the definition.
Here’s what they said: “A bad hire is someone who negatively impacts organizational productivity, performance, retention, and culture.”
The key word in that sentence is organizational. The impact of a bad hire is not isolated to just that one person. The Brandon Hall Group further clarified the impact in each area.
Anyone who’s ever worked with one of these “bad hires” can vouch for all of the above points. Sure, the dollar figure that we can attribute to them is substantial, but is there a pain and suffering price tag that we can attach to them, too? If only their impact was confined to just themselves….
We knew bad hires were bad.
The right people in the right jobs at the right companies… that’s what LEGEND Talent Management is all about! Find out how we can help you assess candidates to ensure that they’ll be the right hire for your company.