According to the National Business Research Institute, 66% of all employers surveyed indicated they had suffered business setbacks due to a bad hire. Direct costs of hiring the so called, “rotten egg” include productivity losses, training costs, HR staff costs, interview costs, employment ads, etc. These direct costs are estimated to range from $50,000 for low-earning workers to more than $200,000 for the highest paid workers. But the consequences of hiring the wrong person go far beyond the cost to replace them. Rotten eggs create havoc: your company may lose business and sales opportunities, experience strained client and employee relations and potentially incur legal problems. Other employees may be influenced by the bad hire’s poor attitude or work style which can demotivate and hinder productivity.
What defines a bad hire? The National Business Research Institute reports the following results from an employers’ survey:
- Quality of work was lackluster 67%
- Failure to work well with other employees 60%
- Negative attitude 59%
- Attendance problem 54%
- Complaints from customers 44%
- Failure to meet deadlines 44%
How and why do bad hires happen? According to Forbes, 89% of hiring failures are attributable to “poor cultural fit.” Cultural fit is hugely important. In a 2005 meta-analysis, Kristof-Brown reported that employees who fit well with their organization/colleagues/supervisor:
- Had greater job satisfaction
- Identified more with their company
- Were more likely to remain with their organization
- Were more committed
- Showed superior job performance
Why is “cultural fit” not fully accounted for in the interviewing and hiring process? The National Business Research Institute cites that 47% of bad hires were made because employers “needed to fill the job quickly.”
What if you could meet your immediate staffing needs quickly — with vetted, qualified candidates who have experience in your industry? What if you could have your candidates screened by experienced external human resources professionals so that your HR staff could concentrate on other matters. What if you could get the work done without having to commit to a full-time hire? Discover how Talencio can be a resource — so that you don’t have to face the consequences of hiring another rotten egg.
To learn more about how Talencio has helped other life science companies with capacity and expertise needs, contact us directly at 612.703.4236 or email to: email@example.com. Talencio, LLC is the preferred provider of vetted, accomplished professionals to the Life Sciences community.
Does Culture Fit Really Matter When Placing Talent? Amara Miller, Talencio. June 10, 2014.
The Unexpectedly High Cost of a Bad Hire, July 16, 2013.
How Much a Bad Hire Will Actually Cost You. Rachel Gullett, Fast Company.
The Real Cost of a Bad Hire. Katherine Tuggle. The Street. January 17, 2014.
Cost of a Bad Hire: Infographic. Ken West, National Business Research Institute, July 16, 20-13.
Kristof-Brown AL, Zimmerman RD, Johnson EC. Consequences of individuals’ fit at work: A meta-analysis of person-job, person-organization, person-group, and person-supervisor fit. Personnel Psychology. 2005. 58:281-342.