A Bad Hire’s Deadly Cost
What does the cost of a bad hire have to do with Ben Franklin?
The great Benjamin Franklin once said, “A small leak sinks a great ship.”
This couldn’t be truer when it comes to your workforce.
Especially during a recovering economy, hiring the right person is critical.
According to the U.S. Department of Labor, the average cost of a bad hiring decision can equal 30% of the first year’s potential earnings.
Harris Interactive and CareerBuilder recently conducted a study which further demonstrates the negative impact of a bad hire:
- 41% of companies estimate that a single bad hire costs them more than $25,000
- 25% of businesses estimate that a single bad hire costs them more than $50,000
- The cost of a minimum wage bad hire has been cited to be more than $4,500
The study also found that many employers were impacted by a bad hire in other ways:
- 41% of employers reported that they lost productivity because of their bad hire
- 40% of businesses lost time due to recruiting and training a replacement
- 36% of organizations stated that their bad hire had a negative impact on employee morale
- 22% of employers shared that a bad hire hurt their client solutions
When it comes to your workforce, it’s crucial that you not only have the right formula in place to help your business succeed, but that the formula also meets your requirements.
Cost Of A Bad Hire – The Basic Formula
Cavalry Management Consultants have the expertise to not only prevent a bad hire from damaging your business, but to also help you unleash your employee’s productivity and your profitability.