By Katie Kulp


It’s the thing that every manager dreads: after weeks of searching, reviewing resumes, and interviewing candidates, the person you hired isn’t working out. What now? Should you tough it out and hope the problem can be resolved, or should you take action quickly? Here are some factors you should consider when evaluating what to do about a bad hire.

The cost of a bad hire – Just how high is it?

The cost and consequences of making a bad hire can vary dramatically depending on the situation, but there is one thing you can be certain of: it will never be cheap. While replacing a high-level executive can be an astronomical expense (often over twice their annual salary), the nationwide average for most jobs hovers at around 20% of their annual salary, meaning that you can expect each bad hiring decision to eat thousands of dollars out of your budget. Because of the significant expense of restarting the hiring process from scratch, some managers are tempted to wait it out and hope for the best; after all, it’s true that some situations might resolve under careful management. Regardless, it’s important to remember that many of the factors that define a bad hire may only compound themselves over time.

Negative attitudes

If your new hire seemed cheerful and easygoing in the interview but has now shown a very different side of their personality, it’s unlikely that their character is going to change for the better any time soon.

Lost productivity

Retraining employees whose skills are not as sharp as they were claimed to be eats up valuable time and prevents your best performers from focusing on their work. If you hang onto a bad hire for longer than is necessary, your team’s productivity will continue to slip.

Poor morale

If a new employee is dragging your core team down or is definitively not able to fit into the company culture, your staff’s morale will start to plummet. If you allow a hostile work environment to persist, you may even have some of your best workers considering their options at other companies.

Customer satisfaction

No matter what industry you work in, your success depends on delivering a product or service that satisfies your clients. As such, any factor that compromises your process (especially for employees who interact directly with clients) will lead to instant and long-lasting consequences.

Preventing future problems

Despite your best efforts to groom each new employee, you may eventually come to the conclusion that things are simply not working out. If you’ve spoken to the employee without reaching a solution or seeing improvement, you should not wait before moving forward. The sooner you start your search for a replacement, the sooner your team can get back on track.Though making a bad hire will likely happen to every manager eventually, it’s a valuable experience that will help you hone your management skills. Since your ultimate goal is to fill your team with star performers who push your business forward, you should always strive for ways to improve your hiring process.

At Chane Solutions, we take pride in helping companies like yours craft more effective hiring strategies through fast, accurate background checks. The more you know about a candidate, the easier it will be to feel confident in your hiring decisions. Our comprehensive screening solutions are completely customizable to meet your needs, so contact us today to start crafting a screening service that works for you.

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