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The High Cost of a Bad Hire

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  • Writer's pictureThe CareerBeacon Team

Adding a poor-performing member to your team could be costing your company time, money, and morale. Those are the findings of a new report released this morning from the recruitment experts at Robert Half.

Their survey of Canadian Chief Financial Officers found that managers in this country spend an average of one full day every week addressing subpar work from staff who don’t measure up. That’s 21 percent of their time. The vast majority, 87 percent surveyed, also say that poor hiring decisions negatively impact team morale.

“When it comes to establishing and maintaining a collaborative, productive and engaged work environment, the right employees make all the difference. Unfortunately, so can the wrong ones,” said Greg Scileppi, president of Robert Half, International Staffing Operations.

A bad hire costs companies plenty. There’s the investment of time and money spent finding and recruiting them. Then the investment of onboarding, equipping and training the new employee, followed by the lost productivity of their subpar work. And finally, there are the further resources required to begin the recruitment process all over again when it becomes clear that the bad hire isn’t working out.

To avoid this, experts recommend some hiring best practices:

Hire for fit

New hires should have the technical chops to do the job well, but don’t forget to assess how various candidates may fit within your team and corporate culture.

Offer above-average compensation

Job seekers with stellar skills know what they’re worth, so the pay is not the place to skimp. Studies have shown this is what Canadian Candidates are looking for in a new opportunity.

Don’t skip the reference check.

No one enjoys calling up strangers to ask for information, but the reference check is still one of the best ways to ensure potential employees are who they say they are, especially since resume lies are on the rise. Here is the most common resume lies that candidates try to get away with.

“A comprehensive hiring strategy is key to preventing business priorities and employee resources from being sidelined by an inadequate or incompatible team member,” suggests Scileppi. “Implement a recruitment process that puts an equal onus on assessing for both technical skills and cultural fit, to ensure candidates have the expertise to excel in the role, and also align with company values and goals from day one.”

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