The biggest asset for the organization is the workforce, and it is their knowledge and ability that can not be replaced ever. Yes, hiring the right talent is a crucial aspect and great employees help you fulfill your goals, enhance productivity, boost sales, and ultimately contribute to a healthy work environment.
Therefore, hiring an efficient candidate is one of the biggest challenges the recruiters and hiring departments face. They have targets to get the seats filled and hire the candidate for the position. But finding the wrong candidate is worse than finding none at all.
As per the US Labor Department, a bad hire may cost you 30% of the annual salary of the employee. Hiring is a huge investment, and employers know the cost of a bad hire.
The recruitment department makes mistakes during hiring under pressure, and it costs the organization both money and resources. To prevent these costly mistakes that may impact your business, you must know what kind of candidate you are looking for and what practices should be followed thoroughly.
Here is a blog that guides the organization through an efficient hiring process and why it is so crucial for businesses.
Impact of a bad hire on businesses
Making a wrong hiring decision costs both resources and money of the organization. Recruiters must conduct background check services that help them avoid all these mistakes and streamline the process of hiring. Let’s find out what the would-be actual cost is if you hire a candidate who does possess the required skills.
1. No Productivity and Growth
When you hire a candidate with no skills and experience, it will negatively affect the productivity of your organization, and the project completion will slow down. All the employees relying on the candidate's work would be affected. It will not only lead to decreased productivity but also impacts the top performers by taking the workload of a bad hire. It decreases their morale, and they might end up leaving the organization!
2. Unsatisfied Clients
Clients have higher expectations from your business, and when the employee is not working as per the expectations and keeps making the same mistakes, it will lead to poor customer service and irritates the clients.
A bad hire does not know client handling and possess no skills and qualities that ultimately weaken their relationship with the clients and ensure they are never coming back.
3. Affects the company's Reputation.
Hiring a bad candidate does not only hurt the organization’s reputation, but loses the employee's and clients' interest in the organization too. The higher-performing employees would never like to work with such organizations. Also on the customer prospect, dealing with a bad hire who knows nothing creates a bad impression of your business and hurts their reputation.
4. Cost during training and recruiting
Productivity is not only the problem with the bad hires, but it is also that you will have to spend more money during the recruitment process or the advertisements. Training the employee is an additional cost that is simply a wastage of your resources and money. Well, paying their salary is another expense!
Moonlighting is another growing concern. Employers find it very difficult to trust an employee working from home.
6. Fake experience to get higher salaries.
It's not new for many candidates to fake experience in attempt to get better packages. Its making hiring difficult as many genuine candidates miss the opportunity while fakers get through.
How these hiring mistakes can be avoided?
1. Carrying out the background checks
Yes, you may be misled! Some candidates are good at cracking the interview, but what about when comes the actual work. Recruiters must ensure that the candidates are highly suited for the job role and are truly experienced with the skills they have mentioned on their resumes. Checking for experiences will ensure that the candidate is holistically suited for the job role and fits into the organization.
Background checks ensure smart recruitment decisions, and Employee Past is one of the best organizations that can help you with the same.
2. Checking for the Employee Qualification
Education check is crucial and helps confirms the work experience of the candidate and know whether they have it for the required position or not. An employer can verify the job from the previous organization via background check services and know whether the employee is eligible for the hiring or not.
It is truly a matter of concern when the employees claim they have years of experience, and when the background verification is done, it comes out something different. Therefore, it turns out to be the best decision to avoid any potential inconsistencies and provide accurate information about the qualification.
3. Criminal Record Check is crucial
Companies are constantly in the position of hiring new employees to fill up the positions, and during the rush, they might skip the criminal background record check. To ensure the company does not hire a fraud candidate or is charged with any violent record, a criminal record check becomes crucial.
It ensures the safety measures for the organization and its employees and ensures a substantial investment in time, resources, and money. Employee criminal record checks tailored as per the hiring position will help the organizations neglect the lawsuits and keep boosting their productivity.
4. Inadequate interviews
Candidates spend their most crucial time preparing for the interviews, and hiring managers must be ready with their appropriate list. It means they must read the candidate's CV before going for the interview and ask as many questions that help them know the candidate better, details about their missing experiences, gaps between the job, and other red flags.
Common misconceptions about the Background checks
Most employers and employees have misconceptions about background checks, which results in the wrong hiring. Here are the misconceptions you must know.
1. Background Checks are all the same
All the background checks are not the same. Candidates must pass all types of tests, including identity, employee details, family background, qualification, criminal record, and more. It is because every job has a different requirement. Say, for example, if the employee will be handling your accounts and cash, you must ensure they do not have any criminal record. Therefore, every check is important and must be carried out thoroughly.
2. Background checks are time-consuming
It is a myth that background checks consume a lot of time and money. However, this is not true in every scenario. It all depends on the search extensiveness, location of records, and more. Tools from EmployeePast offer automated background checks and take a gradually lesser time for completion while offering you accurate results.
3. Big organizations can only afford these
Whether, you are a mid-sized organization, a small business, or a fortune corporation, these background checks are quite crucial. Even small and mid-sized organizations can not afford the wrong candidates working in their organization. Employees are an asset to the organization who works together and bring productivity. The wrong hire is the major reason for the failure of your startup, and a bad hire can cost a company more than the background check services.
What if the employer finds something negative!
If you are a recruiter and find something wrong with the background checks, all you can do is talk to the candidate and offer them empathy. Talk to them about the reason for doing it and understand what they have to say!
The first step the recruiter must take is double-checking the facts and finding out whether the source of information is genuine or not. One of the reputed organizations is EmployeePast you can rely on that ensures the information offered is legit.
It is recommended that must be a clean and clear conversation between the employer and the candidate. If things come out to be efficient, it would encourage the start of a professional relationship.
Hire with confidence the right candidate!
Well, making a bad hire decision can slow down the productivity of the organization, disrupt its reputation, and brings down growth. Avoiding hiring mistakes helps businesses build a strong and successful business, and it is, therefore, one of the most crucial aspects companies should focus on.
All thanks to the EmployeePast that eliminates the bad hire and reduces expenses you spent on the training and other resources. Simply, take out time, do due diligence, be attentive to the candidate’s attitude, and continue to boost your productivity!
We ensure the use of technology and automation that reduces the complexity of the background checks and ensures you are hiring with confidence. Contact our team and get the entire details!