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.