Blame it on shortage of competent candidates or pass the buck to ambitious ramp-up plans of employers, the fact remains the same that a lot of organizations end up lowering their hiring standards, when they are unable to find the right one. The question is: is the decision prudent? Short answer: No. Long answer:
According to the U.S. Department of Labor, every wrong hire can cost the company approximately 30 percent of a new employee’s annual salary. Moreover, a wrong hiring decision may even burn the existing employees, which may create a negative environment. That’s the reason why every company must build a strong screening process or hire professional HR staffing agencies, rather than trying to hunt in the dark. Through this blog post, we examine the impact of wrong hires on different aspects of your business. Take a look.
The most apparent damage a wrong hire brings to your company is reduced productivity. In fact, a survey by Robert Half International – a leading human resource consulting firm – shows that 39 percent of financial officers agree that wrong hires lead to a significant loss in productivity, which reflects in revenue. Wrong hires are usually unable to meet their targets and therefore bring more cost than the value they add.
Regardless of whether an employee is able to deliver what’s expected from their role, you still have to bear their cost. Factor in the cost of any training that might be required to raise their skills to the desired levels; and the resources required to hire a new candidate, should you decide to issue the pink slip, and bring in a replacement. Add all costs, and you are looking at a significant actual financial loss.
When you hire an employee that lacks the skills their position demands, other employees have to travel extra miles to meet the company targets, which adds extra pressure on them. This often creates a feeling of discontent among the existing employees, lowers their zeal, and may even hurt their morale. Regardless to elaborate the nexus between employee dissatisfaction and attrition rate.
Wrong hires not only lead to loss of resources and productivity, they can also harm your company’s reputation. As wrong hires often make unacceptable mistakes, their actions may mar your company’s reputation among customers. Moreover, when you ask a wrong hire to step down, chances are they will leave with a negative perception about your company, which may transfer to industry peers.
You have only two options when you hire the wrong candidate: fire them and look for the right replacement, or train them to bring them up to the required level. Both the scenarios translates into a multilateral loss for the business. Taking the assistance of a professional HR staffing agencies. If you too are finding it a challenge to hire the right ones, let us take care of your worries. Delta Dallas, a trusted talent acquisition firm in Dallas, Texas, can help you find perfect matches for positions in various fields. To learn more about our HR staffing solutions, call us at (972) 362-9552 or fill our contact form and we’ll take it from there.