A Bad Hire Will Cost 3 Times Their Annual Salary

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A bad hire is like a bad apple in a bunch. No care is going to stop it from spreading to the rest. If we quantify the monetary loss you make with a single hire, it totals to 3 times that role’s annual salary. 

This cost comes from recruitment and advertising fees, training and relocation fees as well as staff time lost carrying out recruitment and onboarding processes.

The thing with a bad hire is that the effect is not just monetary. Below are more far-reaching effects of a bad hire

Negative Impact on Team Performance.

Disengagement in the workplace is contagious. This might be the reason why it is so hard to get rid of. The Gallup report shows that less than one-third employees in the U.S. are engaged at work.

When a disengaged employee fails to pull his weight in the company, good, hardworking employees burn out trying to make up for it. You might even end up losing very good employees on the account of one bad hire.

Negative Impact on Your Company Culture

In many ways, the impact of a bad hire in a company will go beyond their tenure in that company. This means that a single hire, especially one in a leadership position, can actually overturn the company culture you have worked so hard to create and nurture. 

Loss of Customer and Stakeholder Goodwill

A bad hire will not only demotivate their fellow employees, they will chase your customers away. Poor performance will affect output and taint customer loyalty of which  96% of customers do not complain of bad service.  They tell their friends and leave damming the company’s customer retention goals. 

Dent on Your Company Brand

If you make one bad hire, there is a ripple effect across your entire organization’s product and service quality. BrighterMonday has recruitment solutions to ensure this doesn’t happen. 

Our BestMatch solution matches the best talent with your open positions. Our bespoke mix of technology and human systems match not only quantitative traits of candidates but qualitative ones as well. Check here to select a product that best suits your current vacant position.

This article originally appeared here

Arnold Akampulira