This is another great article here. Below are some of the points I have taken from this article.
Hiring mistakes happen — but why?
When asked to give a reason for the bad hires, 34 percent of employers said sometimes things just don’t work out. However, a rushed decision topped the list of reasons companies gave for making a bad hire.
- Thirty-eight percent of employers said they needed to fill the job quickly.
- Twenty-one percent say not knowing enough about job candidates contributed to bad hiring decisions.
- Eleven percent didn’t perform reference checks.
The price of a bad hire: It’s more than just money
The price of a bad hire adds up in a variety of direct and indirect ways. For example, 9 percent of companies said bad hires resulted in legal issues and 11 percent said they resulted in fewer sales. The most common effects of a bad hire are:
- Lost worker productivity: 41 percent
- Lost time to recruit and train another worker: 40 percent
- Costs associated with recruiting and training another worker: 37 percent
- Damage to employee morale: 36 percent
- Damage to client relationships: 22 percent