Starting a business is a challenging endeavor. Making sure it stays afloat—even harder to accomplish.
Your company is a reflection of your unique philosophy, which means making sure that all areas of business adhere to that philosophy.
From product development and marketing, to customer service and business infrastructure, everything is woven together with the thread of productivity. And whatever poses a threat to this productivity must be effectively eliminated—starting with the rising costs of a poor hire.
Measuring Success
We all know that an incompetent lackluster employee can be detrimental to an organization’s overall growth, with many hiring managers reporting a loss of roughly “thousands of dollars”.
According to the U.S. Department of Labor, however, we have reason to believe that hiring managers tend to underreport the consequences of making a poor hiring decision. Statistics reveal an estimated loss of 30% of an employee’s first year earnings, with the CEO of Zappos, Tony Hseih going as far as claim a loss of “well over $100 million”!
But the implications of a poor hire are not entirely financial. Here are a few other ways it affects organizational growth:
Productivity Costs
Two words: personality conflict.
If you suffer from a lax human resource department, the chances of hiring an ideal candidate will be reduced considerably.
This means that your line managers will spend more time on training and managing than actually getting the work done. By spending more time on the wrong problem, you ultimately waste precious resources and destroy team morale, which is integral to meeting everyday targets.
Reputation Costs
A bad apple can put you off a great fruit-bearing tree. Why go to the same source when there are plenty of other trees to choose from?
A poor hire is that bad apple, causing irreparable damage to your tree of productivity.
When you let go of a poorly performing employee (due to a hasty hiring decision), he or she may reveal significant structural weaknesses within your organization. In addition, they may use their voice to shatter a well-built image—which can inhibit competent candidates from applying for a suitable position.
Recruitment is an incredibly important part of business, relying on more than a promising résumé and experience.
A seasoned recruiter knows this, and works hard to select a candidate whose personality matches the organizational culture of your unique business.
We are a talent acquisition agency, operating nationwide and across the globe since 1999.
Offering executive recruitment services in HR, software sales, healthcare, finance, medical device sales, higher education and construction management—we bring on board a team of experienced professionals to send a pool of talented faces to your interview table.
Contact our hiring managers today, and recruit someone who can be a true asset to your company!
