When you hire new employees it is always your hope that they catch on quick, show great initiative and love the job. Of course, this does happen, but it’s not always the case. Sometimes they just don’t fit, don’t get the job or just do not mesh well with the company. When that happens, you’re back at square one: searching, interviewing, taken away from your needed job duties and a loss of profit due to nobody being in the needed position. Hiring the wrong employees reduces profits quickly!
Have you ever thought about the costs associated with this gloom time in your organization? Here are just a few of the hidden and no-so-hidden costs:
- Lost productivity for each day/week the position is vacant
- Lost productivity during the training/on boarding process
- Investment in training of new hire
- Payment of severance, continuing benefits and unemployment
- New position ads (classified, job boards, etc.)
- Sorting through resumes by all levels of management
- Responding to job inquires
- Multiple hours spent screening candidates on the phone
- In person interviews by numerous managers
- New hire process
Some of the above are clear: money lost, money paid out to exiting employee and lost productivity. Other, are a little more hidden: the hours taken on by managers to shuffle through resumes, endless phone screening calls and multiple in person interviews. Then, once you find “the one” there is the whole on boarding and training process that must ensue.
The costs of hiring the wrong employees are substantial compared to the cost of hiring a more productive, experienced worker. Ensure that you’re finding those qualified individuals and out source your recruiting process to a experienced recruiting firm that specializes in your needs. Take back the lost hours of screening, interviewing and worry and let the professionals find you “the one”.
For further information including a spreadsheet on the cost of a hiring the wrong employee please email Chris Hillman