The employees are the main asset that helps to run your business successfully. Whether an employee is at a lower rank or the highest rank, every employee represents your organization to clients and customers all across the world. During recruitment hiring the wrong candidate can cost your business a lot of money.
As per research, the monetary cost of hiring a poor candidate could be around 30% of the employee's annual salary. Not it involves the monetary cost, but also it is a huge loss of time and resources, setting down the morale and impacting productivity. The main reason companies end up underperforming and wasting time on the training of candidates is because of the poor hiring.
When you hire a wrong person, you still invest in the resources, train them, brush up their skills while working tirelessly to fit the candidate in the organization, rather than simply letting them go. Either way, the candidate is a drain on the resources. Want to know how? Continue reading the blog.
A bad hire is a drain on resources
1. Productivity Cost
When you are spending a lot of time to train and retrain the new candidates, your business productivity suffers. As per a survey from Robert Half International 39% of the chief financial officers surveyed that a bad hire cost them productivity and also results in lower sales.
2. Financial Cost
The monetary cost is the most crucial and as per research, 41% of hiring managers and HR professionals made a bad hiring decision that wastes thousands of dollars. Also paying someone salaries who are not performing as per your expectation wastes both your time and resources. U.S. Department of Labor estimates that the cost of a bad hire can equal 30 percent of the employee’s potential first-year earnings.
3. Setting down Employee Morale
As you invest a lot of your time to train the candidate to correct the decision of the bad hire you had made, the rest of your team might get dissatisfied as it’s only a single candidate who grabs the most attention. 95% of the financial executives said that a bad hire affects the morale of the team and influences their work.
4. Company’s Reputation
Transparency is a vital factor that is loved by the employees as well as employees. If you hire a bad candidate make sure to monitor your reputation closely so that the candidate does not cause a bad experience for your entire team.
Hiring the best employees
1. You must have a great hiring strategy
Hiring the wrong candidate means not following the standard recruitment procedure. Following a perfect hiring strategy such as background screening of the candidate from the very beginning will help you to bypass all the other steps. This way you will be able to hire the desired candidate who has met all your expectations.
2. Be very specific
The most important thing is you have a list of everything you’re looking for and need in the new employees you want to hire. Some of the key items you can put on your checklist include:
All the tasks the new employee will have to take on. Aside from the usual ones, add some possible duties or responsibilities, if necessary.
Personality traits that will help the employee have an easier time fitting in your company.
3. Observe candidate during the interview
The interview offers the best opportunity that allows you to assess the applicants and choose which one of them fits in the organization.
The Best Solution – Employee Background Screening
Organizations better know the challenges of hiring. But what is the solution?
Employee background screening is the key solution that helps to improve your hiring process. It offers qualification checks, previous job verification, reference check and more that helps your organization to hire the candidate that is appropriate for the desired job.