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The real cost of a bad hire

Getting the right person the first time is becoming more important then ever. who wants to pay 50 000 dollar for each wrong hire? the truth is that over 50% of all companies are effected by it (the other 50% are probably just not aware of it yet)

Successful companies hire the right people

Getting the right people in the right place is imperative to business success. Selecting the wrong person for a job is one of the most troublesome and costly decisions an organization can make.

Companies often realize that not all new hires turn out as positive and appropriate as anticipated. This is not surprising. Assessment and recruitment of the right candidate for a particular job is hard, and can take up much more time than most companies can reasonably allocate. Defining and measuring a candidate’s true personality and competencies can be extremely complex in today’s rapidly changing business world and the selection must ensure that the candidate will be a good match with the people he or she will be working with.

 

Is it better to leave a position unfilled or take a chance on a potentially wrong fit?

According to a the survey (CareerBuilder) of "more than 6,000 hiring managers and human resource professionals worldwide,more than half of employers in each of the 10 largest world economies have felt the affects of a bad hire (a bad hire was defined as someone who either turned out to be a poor fit for the job or did not perform it well).

While it should come as no surprise that poor hires can mean revenue and productivity losses, the study sheds light on just how much those costs add up. For example, 27 percent of employers in the U.S. who reported a bad hire said that a single bad hire cost more than $50,000".

In Germany, 29 percent of employers report losses of 50,000 euros ($65,231) or more. In the U.K., 27 percent of companies say bad hire costs more than 50,000 British pounds.  Three in ten Indian employers (29 percent) reported the average bad hire cost more than 2 million Indian rupees ($37,150), and nearly half of surveyed employers in China (48 percent) reported costs exceeding 300,000 CNY ($48,734). Source: Dr. Kustis; Carrerbuilder/com/blog/2016/07/06/the-real-cost-of-a-bad-hire

The study clearly revealed how businesses in countries all over the world are struggling to find the right talent to fill open positions – and the negative impact it can have on business.

 

In Germany, 29 percent of employers report losses of 50,000 euros ($65,231) or more. In the U.K., 27 percent of companies say bad hire costs more than 50,000 British pounds.  Three in ten Indian employers (29 percent) reported the average bad hire cost more than 2 million Indian rupees ($37,150), and nearly half of surveyed employers in China (48 percent) reported costs exceeding 300,000 CNY ($48,734). Source: Dr. Kustis; Carrerbuilder/com/blog/2016/07/06/the-real-cost-of-a-bad-hire

The study clearly revealed how businesses in countries all over the world are struggling to find the right talent to fill open positions – and the negative impact it can have on business.

 

What is more important, skill or personality?

Many companies focus on the experience and skills of the candidates, Our research with succesfull companies however reveals how crucial it is to identify crucial behavior traits for success in any given job before starting the hiring process. Being able to do so requires establishing criteria in the form of key personality traits.

Knowing what you’re looking for will help you to match and identify the right candidate for the job, and will help you conduct quality interviews with relevant potential hires, saving time and money.

Learn how you can do so by contacting us.

Category: Articles
Tags: Cost of recrutiment, Right candidate

Date: 19.12.2016

Norbert Mörtl

Content Writer