Most companies underestimate the true cost of a bad hire. The U.S. Department of Labor reports that a bad hire can cost a company up to 30% of the employee’s first-year wages with higher level employees costing even more. Additionally, data from The Society of Human Resource Management shows that it takes most companies about 36 days to fill an open position and costs about $4,000.

The Impact of a Bad Hire

Although there is a clear financial cost of a bad hire, there are also non-monetary impacts on your organization’s resources and culture. The time managers and company leaders spend screening, interviewing, onboarding and training new hire candidates adds to indirect costs. The loss of a recently hired employee creates disruption to the team’s workflow and the effort needed to fill the gap can take a toll on the whole organization.

Non-monetary impacts:

Low company morale. Hires who do not fit well into an organization can cause undue strain on the team. Company culture can be damaged from the tension and challenges experienced with a bad hire.

Decreased productivity. Team dynamics and roles shift and need to be reestablished. Job responsibilities need to be reconfigured to compensate for the new job vacancy. This adds up to more training and burnout from existing employees. Overworked staff leads to lower quality work, less job satisfaction and diminished engagement.

Avoiding the costs of a bad hire

Though no process guarantees that a new hire will become a successful long-term employee, the risks associated with a bad hire make it critical to invest in sourcing candidates who align with the culture and environment. Outsourcing recruitment efforts is an effective strategy to help ensure better hiring outcomes. Experienced recruiters employ strategies to source high quality candidates, create an efficient hiring process, establish successful onboarding programs and assist with retention.

Benefits of outsourced recruitment include

Dedicated focus. An outsourced recruitment team is focused solely on finding the right talent for the right job. Often, especially at small and mid-sized companies, this relieves hiring teams who are stretched thin juggling other HR responsibilities.

Speed & Efficiency

Staffing firms utilize established screening processes to enhance the interview process and move quality candidates quickly through the pipeline.

Expertise

Talent management experts leverage extensive networks and industry knowledge to access both active and passive candidates.

Customized Placement Services

Recruiters have the flexibility to perform executive search, contingent placements as well as contract or temporary hiring depending on an organization’s current and future needs.

Quality Candidates

Agencies can save time and make the process more efficient by sourcing top talent who meet the job requirements and are also a good cultural fit.

Compliance Assurance

Outsourced recruiters can manage the legal complexities of the hiring process to ensure that new hire candidates are fully qualified for the position.

The Wilner Group has deep expertise in the nuances of the job market. We offer three verticals of business to help match the right recruits with the right opportunities: retained search, contingent permanent placements and contract and temporary projects. If you need personalized assistance with staffing and placement, please contact Maureen Wilner at 201-897-6401 or visit www.wilnergroup.com.