Did you know a bad hire can cost from 30-200% of annual earnings? Also, the average time to replace a bad hire is 16 weeks?
Shocking right? Or that’s a bit much just for a bad hire, right? Well, let’s take a closer look.
One might think that bad hires only cost their worth in salary, but that’s not all. Not only do bad hires cost you money and time, but they also impact the rest of your team and staff’s morale.
As a result, this impacts productivity and creates an uncomfortable working environment for others. What happens when the rest of your team has to pick up the slack? And then it affects the work environment. And then the team’s morale is too.
A replacement would be found, they would need training. What kind of productivity are you losing in that time until they reach optimal productivity?
Let’s talk in terms of your clients? When your organization’s reputation is impacted negatively by bad hires, it affects existing and prospective clients.
How much revenue do you lose over time from clients who were turned off by previous poor performance or lack of performance as a result of bad hires? How many lost sales opportunities will there be because of this negative impact on your organization’s reputation?
Let’s look at this example:
An employee is hired at ₦18,000,000 per year. After three months, he quits. The replacement process took another month and a half at a cost of ₦2,250,000
A new hire with more experience is then hired for ₦20,000,000 per year. His training & onboarding cost up to ₦5,000,000 ( i.e. 25%)
The team also lost out on ₦3,000,000 in revenue from missed opportunities during the time spent with the new employee learning the ropes. On top of that, there were damages to reputation and brand at a cost of ₦1,500,000.
It all adds up fast, as you can see—all because you didn’t hire the right person in the first place.
You have to admit that’s a lot, don’t you? No, don’t fret, there’s a way to handle all these.
Wouldn’t it be good to know how to recognize a bad hire; are they already in your organization, or are they about to be?
Is There A Way To Eliminate Bad Hires?
You would agree that bad hires are really a huge problem to an organization, one that has been going on in most organizations, and it is quite interesting that it has been accepted as just one of those things.
Worse, only a few people know about this, and fewer are doing anything about it.
After reading all of these, you are probably looking for a way to streamline all these processes and get a leg up on your competition, that’s a very smart business move, kudos!
Hold up! Let’s take a moment, let’s imagine a scenario where 96% of the new employees you hire are good hires. In addition to that, they have become so effective in your team that they have inspired others to perform even better.
Just think of how many headaches, resources, time, and money you would have saved.
Fortunately, you do not have to imagine it; we can make it a reality for you.
At Oscar Temple, we believe you deserve more returns from the organization’s investment in talent.
Utilizing the latest technology and scientific advancements, we positively impact the recruitment process.
We are so streamlined in the way we research, qualify, assess, and deliver our candidates that 96% of the candidates we place are still employed 12 months later, and 93% are still employed after 24 months.
The retention rate we experience with our clients is significantly higher than they have experienced with other recruiters.