Hiring the wrong person is an expensive error. It can cost up to 100-265 percent of the annual cost of the terminated employee. Some companies mention it can cost up to $200,000 for hiring, terminating the bad hire, finding a replacement, and then hiring the replacement for an employee whose annual salary is $100,000. This cost covers:
Hard Costs:
• Recruiting fee, which is usually 20-30% of the employee’s annual salary.
• Interview expenses, such as flights and hotels for out-of-town potential employees coming to interview with your company.
• Relocation Expenses of the New Employee.
• Advertisements on job search websites, job boards, and newspapers; Monster.com charges $395 per job posted or $1000 to search resumes.
• Training the Replacement: Outside training programs can cost $2,000- $20,000.
• Temporary contract help to fill in once the bad hire is terminated.
• Missed deadlines.
• Clients lost.
• Lost productivity of the hiring manager for time spent searching for the replacement.
Soft Costs:
• Extra work for the remaining team members.
• Inefficiency of the team.
• Lower team morale.
• Negative impact on the customer for poor customer service.
• Loss of institutional memory and intellectual property.
Why do companies hire the wrong person?
Many companies trust their instincts on people rather than employ the best hiring strategies. Going with your gut can often have disastrous consequences which can add up to a huge cost for your company. Studies show that it is much more difficult for hiring managers to pinpoint compatibility than competence, which is why most employees who are hired for their skill sets and experience are fired because of poor attitude or behavior.
How AtlasAdvancement can help:
AtlasAdvancement works to develop mutually beneficial relationships for both the candidate and for the client. We meet the proper candidates face to face and work to understand their needs and wants regarding their desired job. Once we have met to gain a thorough understanding of the candidates’ dream job, we perform in-depth reference checks to assure our candidate’s past accomplishments. Our track record of success has allowed our relationships with our clients to grow, giving us the unique opportunity to understand the corporate culture of each of our clients extremely well. Then, we place excited, qualified candidates with the right job for them. Our employees have over twenty years of market experience and a high record of successful placements. For more information on our methodology please see www.atlasadvancement.com and click your cursor on Methodology.
|
