Hiring the wrong person can be costly – in more ways than one.
A bad hire can hit a company’s bottom line hard, but the biggest concern employers have when taking on someone who is a bad fit is the toll it can take on employee morale.
A Robert Half study released December 4 found that 41% of Canadian CFOs worry about lower staff morale when hiring the wrong person. This was followed by lost productivity (34%).
The monetary cost was a distant third, at 19%.
“A bad hiring decision can often cause a negative ripple effect through the organization,” said Greg Scileppi, president of Robert Half, international staffing operations.
"Hiring a bad fit or someone who lacks the skills needed to perform well has the potential to leave good employees with the burden of damage control, whether it be extra work or re-doing work that wasn't completed correctly the first time. The added pressure on top performers could put employers at risk of losing them, too."
That’s not to say that the financial cost is negligible. A PI Worldwide report released in July found that the average cost of a bad hire can come up to 30% of the employees annual salary. When the person in question is a senior executive, that can add up to more than $50,000.
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