Choose Wisely to Avoid the Cost of a Bad Hire

June 12th, 2012 by

There are several costs associated with hiring a new employee. Money is spent hiring a recruiter, advertising the new position, reimbursing travel expenses and training the new staff member. Not only are financial resources used, but employers spend an ample amount of time with job candidates and new hires. Time is spent interviewing, onboarding and educating the new team member. When considering all the effort invested in one employee, uncovering that she’s a bad hire can be devastating.

CareerBuilder’s recent survey on costs related to bad hires indicates that 65 percent of the participating US hiring managers said that their bad hiring decision cost their company $25,000 to $50,000. Financial losses are easy to spot, but bad hires can also lower productivity and impact their coworkers negatively. Although you can’t prevent a bad hire 100 percent of the time, you can take several steps to ensure a candidate is a good fit for your job opening. Use the tips below to avoid a poor hiring decision:

Know the Job

Do you know why you have a vacancy at your company, and why it hasn’t been filled yet? If your opening isn’t new, take some time to thoroughly understand the requirements and skills needed to fill the position. Review what made past employees successful in the position and what made them ultimately leave. If there wasn’t much success, evaluate what you can do to help reduce turnover.

Nail the Interview

Evaluate your company’s role and responsibility during the interview process. Do you have good interviewers that are excellent time keepers and make job candidates feel welcomed? Do you utilize interview questions that will paint a picture of what the candidate did at his previous job? Do you incorporate questions that will give the candidate different scenarios of what he can expect from his new job? Planning for well-thought-out behavioral interview questions is a must.

Check and then Double Check

Before setting a start date for your new employee, make sure all of your company’s pre-requisites for new hires are completed. Perform a background check to verify his employment and criminal history, call his references to confirm his past work performance and experience, and have him complete an assessment to further demonstrate job fit.

Following the three tips above should help you identify high-performing talent and avoid making a costly hiring mistake. CAI offers services to help you increase your chances of selecting a great hire. Contact Molly Hegeman at 919-878-9222 or http://j.mp/cai-a for more information about recruiting and assessments.  Contact Kevin von der Lippe at 336-668-7746 or www.capital.org/vea for questions regarding background checking and reference services.

Photo Source: hawken king

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