How Bad Hires Hurt Your Organization
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How Bad Hires Hurt Your Organization
Most firms have to deal with bad hires, which can hurt productivity and morale, and can result in a five-figure loss. So it's vital to conduct background checks. -
Poor Decision
75% of the hiring managers and HR professionals surveyed said their organization has made a bad hire. -
Bogus Claims
37% said their company hired a candidate who lied about his or her qualifications. -
Missing Measure
28% of the respondents said their company does not conduct background checks of new hires. -
Expensive Mistake
The average cost of a single bad hire is $17,000. -
Negative Traits, Part I
58% of the respondents said employees who don't produce the proper quality of work make bad hires, while 52% cited workers who have poor attitudes. -
Negative Traits, Part II
51% said employees who can't work well with co-workers make bad hires, and 49% cited candidates whose skills don't live up to their claims during the hiring process. -
Workflow Stoppage
36% of the hiring managers and HR professionals surveyed said it's very common for bad hires to bring down office productivity. -
Bad Karma
31% said these hires will often lower morale in the company. -
An "Oh no!" Moment
20% of respondents said they know within the first week of hiring a candidate whether they made a mistake, and 53% said they know within the first three weeks.
If you're like many CIOs and other executives and managers, you've been saddled with a bad hire at least once in your career. In fact, most companies have to deal with this issue, according to a recent survey from CareerBuilder. In some cases, candidates lie about their qualifications. In others, they develop negative attitudes while failing to meet quality-of-work expectations. As a result, department productivity and morale typically take a plunge. And this costs companies plenty—a five-figure loss on average. That's why it's essential to conduct background checks, if simply to distinguish candidate fact from fiction during the hiring process. "If an employee isn't well-suited for the job or has a bad attitude, the time they spend not working could significantly impact your bottom line," said Ben Goldberg, CEO of Aurico, a CareerBuilder company. "That's why it's so important to make sure qualifications are substantiated. It's a hard cost to quantify, but it adds up when you consider the loss of employee morale, the additional supervision that employee needs, productivity loss for the organization, revenue that's not being generated and client relationships that could be turning sour as a result of bad impressions." Nearly 2,380 hiring managers and HR professionals took part in the research, which was conducted by Harris Poll.
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