01 Jan

How much does a bad employee cost the boss?

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