By Katie Kulp


Have you ever hired a new employee only to quickly realize you’ve made a mistake? Due to the urgent need to fill critical positions, every manager has their own story about a new hire that went bad, and bad hires are made every day. What does a bad hire really cost, and how can you avoid making them in the future?

Making a bad hire – What does it really cost?

The financial cost of making a bad hire is well recognized, yet hard to pin down. Though it’s fair to state that a hiring mistake could cost you “thousands of dollars,” the inexactness of such a statement fails to capture the severity of the situation. The Department of Labor estimates the average bad hire will cost you 30 percent of that person’s annual salary (in addition to whatever you pay them while they work for you).

How a bad hire can affect your company culture

The impact of bad hiring decisions goes far beyond what you lose in recruitment and training. Most bad hires aren’t defined by their lack of skills or proficiency. After all, such factors are relatively easy to pin down during the interview. Rather, most bad hires are defined by character and personality traits that are damaging to your company culture.

Consider the impact an unpleasant or underqualified employee has on their peers. As your other employees struggle to pick up the slack of the underperformer, their own productivity and morale will suffer. You may even see the strain start to affect the bonds and professional dynamics that once made your team thrive. Special care should be taken when hiring managers and other upper-level employees. Since their influence on both your budget and company culture are significantly greater than that of their subordinates, hiring an ineffective leader can have effects that linger long after you’ve replaced them.

Avoiding bad hires

Though these dangers highlight the seriousness of hiring the wrong candidate, the problems are neither irreversible nor unavoidable. If you really want to know a candidate, you have to go beyond what’s revealed in their resume and interview. After all, they will only show you what they want you to see. In contrast, thorough vetting of every candidate, including comprehensive background checks, can help you discover what type of person you’re really working with.

Is your current background screening process enough to protect your business? At Chane Solutions, we understand your company’s security depends on making a solid hire every time. Our comprehensive and customizable screening solutions guarantee you will have the information you need to make a great decision. To learn more about screening options that are available to you, contact us today.


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