And let’s face it, they are what determine how successful your business will ultimately be. That being said, there are many dangers to hiring the wrong people to manage your employees and carry out the work of your company every day.
We’ve compiled a list of the biggest risks that you open your business up to when you make a hire that is not the right fit.
Financial risk. Hiring the wrong candidate for a position at your company has the potential to create significant financial turmoil for your company.
A recent Forbes article states that hiring the wrong person for a role can cost your company up to $50,000.
Besides paying this hire’s salary for the time they are working for you, your company also may incur costs of training this individual and could potentially end up paying them a severance package, should they ultimately be let go.
These costs add up and are sure to have an effect on the overall financial well-being of your company.
Loss of productivity. When there is someone in a role who is not performing well or is just plain not a good fit, it can quickly reduce the level of productivity in your office.
Having to reassign tasks, shuffle responsibilities, or redistribute workload to alleviate the pain of having a bad hire carry out tasks.
According to Entrepreneur, a survey revealed that 39% of chief financial officers stated that a wrongful hire resulted in a loss of productivity in the workplace.
Remember that the time spent trying to work out the issues with this employee could be better spent on more productive work.
Poor employee morale. The morale in your office is almost guaranteed to decline in the event of a wrongful hire.
When upper management is forced to focus so much time and energy on one person, it takes away from the time that could be spent on employees that are a good culture and performance fit for your business.
In a survey conducted by Robert Half International, it is cited that 95% of financial executives stated that making a bad hire will at least somewhat affect the morale of a given team, whereas 35% of those surveyed said a wrongful hire has a large influence on employee morale. This could result in disengagement and even the loss of loyal and fitting employees.
How your PEO can help you avoid wrongful hires
You are probably wondering how to ensure that your company does not make these ill-fitting hires and, in turn, cause unnecessary damage to your business.
Utilizing your PEO to help construct a seamless and effective hiring process is a good way to combat the possibility of hiring wrong.
Your PEO has the skills and appropriate tools to help customize the recruiting experience to match the needs, culture, and standards of your individual company rather than applying a one-size–fits-all approach that can have serious consequences.
We can help place you with the right PEO to fit your business’ recruiting needs.