What Is the Cost of Hiring the Wrong Person?

$60,000.

Is your business willing to risk losing that sum of money on making a bad hire?

Experts say that the cost of hiring the wrong person for a professional level position – an employee in the annual income range of $50,000 to $100,000 – is between $35,000 and $60,000. Because it takes about 6 months on average to react to a bad hire, money is lost due to salary and benefits paid to this person during that time. Beyond that, money is also lost due to this hire’s poor productivity and a lack of achieving the expected results required of him or her in the position.

No one wants to make a bad hire, but unfortunately, it does happen.

  • The most common cause of a bad hire is relying on a limited pool of candidates. This is straightforward—when choosing from a small or limited pool of candidates, the odds of finding the right person for the job are just not in your favor.

 

  • Another common cause is screening candidates based on resumes alone, rather than personal interviews. It is very difficult to assess a candidate’s ability to do the job based solely on a resume. Will the candidate be a good fit with your company’s culture? Does the position and your company align with the candidate’s interests and career goals? On that note, what are the candidate’s career interests and goals? The answers to these questions will not be found on a resume.

 

  • Along the same lines, matching a candidate to a position based only on his or her apparent experience can lead to a bad hire. When screening based on resumes alone, a company will often fall into the trap of looking only to directly match experience, rather than recognizing other strong candidates with related backgrounds who could also do the job very well. When companies require direct match experience, it is very difficult to fill the positions with quality employed candidates. In most cases, the best candidates who do have the directly matching experience desired do not want to continue doing the exact same thing at a new company. They generally want to take on additional or expanded tasks for their own career development as well as to be challenged on the job.

Knowing these common causes, what is the solution?

Start by accessing a larger pool which includes employed candidates to find the right hire. Companies in Northeast Ohio are able to do that through working with Cleveland Business Consultants.

At CBC, we emphasize that there is no cost to a company to meet and compare our candidates to those the company finds on its own. We believe it is in the company’s best interest to compare our candidates to those they identify on their own to ensure they are getting the best person for the job. Once they meet the candidates we provide, they can decide if we have provided a match that justifies our fee. We are so confident in our ability to make excellent matches that we do not charge  for interviews; a fee is due only if the candidate is hired.

We go an extra step to help ensure your company does not make a bad hire. Once a candidate is hired, we offer companies our Triple Guarantee.  First, we offer a 60/90 day guarantee to ensure that the candidate can do the job. Secondly, we offer a 12-month sincerity guarantee to ensure the candidate is committed to your company. Finally, we offer a lifetime non-solicitation guarantee, which ensures that we will never recruit a candidate that we placed in your company.

If you want to avoid the costs of a bad hire, work with CBC to fulfill your staffing needs. Let us know how we can help.

 

Hire the Right Person with CBC