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Why Is Hiring So Difficult? Part 2 of 4

OK, so everyone can identify with this dilemma.

How else can you do it?

Hire more HR people = extra cost. Engage a recruiter = extra cost.

The direct cost, related to hiring, is immense. Most subscribe to a

SHRM study that says it’s over $4,000. But the cost of a poor hire dwarfs this.

A CareerBuilder survey estimates the average cost of a

bad hire is $15,000. How is that high a cost possible?

Think of the associated cost of each below:

  • Less than acceptable productivity from individual

  • Quality of work is lacking because of lack of skills

  • Morale loss of other employees having to compensate

  • Time/effort to document and reassign or remove poor hire

  • Time/effort to hire replacement

  • Lost productivity during search to replace

  • Potential negative customer impact for poor service

In many situations, $15,000 might actually be too low.

We can argue the actual cost, but no one can deny there are

substantial costs to hiring someone and making a poor decision. Why

do most companies still go through a similar painful, ineffective

process and what can they do differently?

Let’s address that in Part 3 of this series next week.

Happy Hiring

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