Short answer: It is too high. According to a study by CareerBuilder, the average cost of bad hires was found out to be $15,900. That number includes all costs associated with hiring–from background checks and training to overtime pay for current employees who have to absorb the new hire’s workload until they leave.
To say bad hires are bad for your business is an understatement. Bad hiring decisions harm the morale of the company’s existing staff, which often leads to high turnover rates–and can even cost you clients!
How to Avoid the Costly Decision Of A Bad Hire?
These are eight steps you can follow:
1. Clearly Define the Job
The first step in the hiring process is writing a job description that outlines both the primary and secondary responsibilities of the new hire. It should be clear enough for candidates to understand and thorough enough to determine if they fit well in position requirements.
2. Know What You Need
Based on the job description, identify what skills and qualities are needed to succeed in the position. Include all specifics of any certifications or degrees that candidates must have and soft skills such as interpersonal skills and problem-solving abilities. The more specific you can get, the better chance you can narrow your list of candidates to the best three or four.
3. Verify Experience and Education
Take nothing for granted when hiring; make sure that all candidates meet the minimum requirements before moving on in the process. If you are recruiting via social media, ask for scan copy of credentials mentioned in the resume before the interview process begins.
4. Conduct Phone or In-Person Interviews
Invite them for phone and in-person interviews once you have narrowed down your list to qualified candidates. Discuss their experience to identify where they would fit into the company. Ask tough questions to determine if they have the soft skills needed for the position and are a fit with the organisation’s culture.
5. Use an Objective Third Party
If you have a bad feeling about a specific candidate, bring in an objective third party to interview them and participate in your normal interview process. Often, bad hires are bad hires because you don’t feel confident in your ability to read people well.
6. Use a Professional Hiring Service
Another alternative for interviewing potential bad hires is to use professional hiring services to narrow down your candidate list and conduct the interviews on your behalf. Background checks are also conducted on each candidate by staffing agencies like us, giving you insight into previous employment history. This service can save you time and money because third-party recruiting professionals often uncover bad hires.
8. Ask How Candidates Would Handle Certain Situations
When interviewing bad hires, ask them how they would handle different situations, such as dealing with difficult people or taking an unpopular stance with management. This gives you additional insight into their personalities and how they would fit with your company.
Therefore, recruiters and managers can avoid wrong hiring by the above-proven steps and be on a constant lookout for red flags.
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