The key to your company’s success is also its biggest obstacle: identifying and recruiting the best candidates
Hiring the right people is essential for the success of any organization. Hiring the wrong people can be a costly mistake that can negatively impact not only your bottom line but also the company’s morale, productivity, client relationships, and reputation.
Financial Costs
When a person leaves shortly after being hired, the costs associated with recruitment, training, and onboarding are wasted and introduce the risk of potential legal fees.
Recruitment
Expenses start to mount long before a person joins the team, including advertising the position on various platforms, skills assessments, personality evaluations, and background checks.
Training and Onboarding
Once a hire is made, costs are added for training and onboarding, including training sessions, online courses, development programs, and workplace setup.
Legal Costs
Hiring the wrong person can also lead to legal issues, including severance, legal fees, or potential settlements.
Hidden Costs
The cost of hiring the wrong person extends beyond the immediate financial losses. Indirect costs may have significant and long-lasting effects on an organization, including morale, productivity, client relationships, reputation, and lost opportunities.
Low Team Morale
When the wrong person is hired, the whole team suffers. Team members might need to take on more work to compensate, resulting in tension and conflict. This may result in a negative work environment, which may lower employee morale and increase turnover.
Lost Productivity
A wrong hire’s poor productivity soon becomes the team’s problem. As others are forced to step up, productivity suffers and may cause delays in project completion. In addition, a wrong hire could result in low-quality work that needs more revisions and corrections, further holding up progress. On the hiring side, repeating the hiring process forces team members to review new applications and conduct interviews instead of focusing on other tasks, resulting in lost productivity.
Client Relationships
When a wrong hire lacks the skills to complete quality tasks, client relationships are also at risk. This will have a direct impact on how your clients view your business’s performance – and clients who have a bad experience with a business are much more likely to share their experience with others, which can affect your ability to attract new clients.
Employer Reputation
Hiring the wrong person can also damage your company’s reputation. Negative reviews on job websites or social media can reduce your company ratings and make it difficult to attract top talent in the future.
Lost Opportunities
Lastly, a wrong hire could have significant opportunity costs. Strategic initiatives and growth opportunities receive less attention when resources are devoted to managing or compensating for a wrong hire. Critical business opportunities could be overlooked if the team’s attention is taken away from development and toward damage control, potentially causing a company to lose its competitive edge in the market.
What Contributes to Wrong Hires
An ineffective recruitment and hiring process can deter top talent in the current industry landscape, which is already facing a shortage of skilled workers. The best candidates are frequently in great demand and have several job offers, and a lengthy hiring process can cause them to lose interest or accept other offers. Companies frequently make hasty decisions and compromise on important issues because they lack the time to thoroughly assess candidates and conduct their due diligence. But, failing to make a good first hire could end up costing companies more than if they had put a little extra time and money into selecting the right person for the role.
At ClearBridge, we’ve made hiring quality resources our number one priority. We take the time to get to know you and your needs and do all the heavy lifting of recruiting so you can grow your business, meet deadlines, increase morale, improve productivity, and reduce risk. Our strategic approach to hiring and resourcing includes years of experience, industry knowledge, and a proven delivery model with options to provide any combination of full-time, contract-to-hire, or contract resourcing.
Are you interested in hiring new talent for your team but lack the time or resources to do so? Contact ClearBridge to learn how we can help you get the skilled workers you need when you need them.
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