Truth be told, the cost of a bad hire induces widespread collateral damage — like spending $100 bills to earn pennies. When you consider that a toxic employee has a negative impact on both coworkers and customers, the costs skyrocket. According to a recent Cornerstone report, bad hires make their teammates 54 percent more likely to quit and can cost organizations up to three times more in hiring fees. Instead of leading, managing and delivering excellent customer service, bad hires force managers into damage control.
The cost-to-hire is just one ingredient in a more complex formula that should be used when evaluating a poor hire. Additional variables include unemployment compensation, missed business opportunities, loss of team productivity, poor customer service, outplacement, weakened employer brand, litigation fees… just to name a few.
So, what can a company do to reduce the risk of a bad hire and mitigate financial and other collateral damage? Listen to this interview with hiring expert Ira S Wolfe.