Cost of a Bad Hire Revealed

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By Robert Half March 21, 2017 at 7:01am

Costs of a Bad Hire Revealed

Does your hiring process help you make the right decisions or lead you down a path of costly mistakes? Read on to see just how much a bad hire can cost you …

Among small and midsize business owners and managers polled:

• 81 percent admit making a bad hire.
• 49 percent believe most hiring managers underestimate the complexity of the hiring process.

Percentage of business owners surveyed who experienced the following outcomes due to a bad hire:

54% time wasted hiring and training someone
53% increased stress on the team
37% increased stress on the manager
20% decreased confidence in management’s ability to make good hiring decisions

Do you have 17 weeks to spare?

Even when firms realize they have made a hiring mistake, they are slow to take action.

Realized Bad Hiring Decision

58 percent said it took less than a month to realize they made a bad hiring decision…

Time It Took to Let Person Go

but it took more than twice that time on average (8.8 weeks) to let the person go.

Time Passed Before a Replacement Started

Nearly five more weeks passed before a replacement started working, with 68 percent of businesses putting the added workload on existing staff during this time.

AVOID COSTLY MISTAKES:

BRANCH OUT. 58 percent of respondents said the best new hires come from referrals, including employees and recruiters. Of the businesses that use recruiters, 76 percent said a recruiter was able to find a candidate they wouldn’t have found on their own.

DELEGATE. 43 percent said working with a recruiter saved the firm time by doing most of the work; 36 percent said it saved them money by finding someone quickly.

GET A GUARANTEE. 32 percent of businesses working with recruiters said they do so for the service guarantee.

BRIDGE THE GAP. Along with lining up your next new hire, recruiters can help you find temporary professionals to ease the burden while roles are vacant.

Robert Half survey of more than 1,000 business owners and human resources managers in the United States at companies with 1 to 499 employees.

Are you taking too long to hire? Find out here: roberthalf.com/time-to-hire

© 2017 A Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.

Hiring the wrong person can cost you time, money and more. View our infographic and discover how you can improve your hiring process.

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