How Much a Bad Hire Will Cost You
Hiring the right people is essential to a successful business. What’s the impact of hiring the wrong people? How much does it cost your business to hire the wrong people?
Fast Company provided a great article (by Rachel Gillett) and Infographic on a study “How Much A Bad Hire Will Actually Cost You” that breaks down the impact. To view the full story on Fast Company, click here.
Congratulations! Your startup is seeing some seriously rapid growth, but make sure you fill in the gaps with the right people because a bad hire might cost you more than you think.
Zappos CEO Tony Hsieh endeavors to raise the perfect Zappos “family.”
That’s why he ditched his company’s old corporate structure; it’s why he offers new hires $2,000 to leave the company; and it’s why he practices the policy of hiring slowly and firing quickly.
So where did this obsession with fostering this culture come from?
According to Hsieh, his past bad hires have cost his company “well over $100 million.”
That’s not surprising, considering the results of a recent CareerBuilder survey.
Out of more than 6,000 hiring professionals worldwide, more than half said they have felt the effects of hiring someone who turned out to be a poor fit for the job or who did not perform it well.
Twenty-seven percent of the U.S. employers surveyed said that just one of these bad hires cost their company more than $50,000.
“When you add up missed sales opportunities, strained client and employee relations, potential legal issues, and resources to hire and train candidates, the cost can be considerable,” says CareerBuilder CEO Matt Ferguson.
While your business may not be making the headlines, a bad hire could still seriously cost you. But, as luck would have it, there are ways to avoid the sticky situation and really hire for growth.
Check out this infographic slide show compiled by online training platform Mindflash for more insight into the cost of a bad hire and what you can do to avoid it.
