We talk a lot about hiring the right person for the job. We know that finding the correct cultural fit for your company is as important as the skills and experience a candidate may possess. What we don't talk about as often is what happens when you don't hire the right person and the costs associated with this common mistake. 

First of all, the literal cost – the quantifiable financial impact measurable in dollars…

There's been a lot of research done to survey this cost and, well, spoiler alert: It's a lot of money. 

Certain studies, such as SHRM, estimate that to fully onboard a salaried employee, it costs 6 to 9 months' salary on average. For a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses. 

Robert Half conducted an international survey that showed another side to the financial implications of a poor hire, sales are often negatively impacted as well, plus productivity is slashed as managers are now spending a hunk of time training, supervising, or otherwise monitoring performance. 

Depending on why the bad hire in considered such, he or she may have wreaked havoc on other areas of the business. Maybe customers were treated poorly resulting in loss of business or perhaps sloppy performance is leaving your fulfillment processes damaged. Either way, the financial impact can be much greater than simply how much it costs to post an ad or train an employee. 

Even so, costs of the cultural implications associated with a poor hiring choice can often times be even more detrimental. 

More research from Robert Half shows us the impact a bad hire can have on team morale. While the bad apple is being bad, the team is having to pull the extra weight which results in the following:

  1. 53 percent increase in stress on the remaining team;
  2. 37 percent increase in stress on the manager; and
  3. 20 percent decrease in employee confidence regarding management’s ability to make favorable hiring decisions.

Furthermore, the decrease in morale can lead to a domino effect in a couple of ways: Bad habits are infectious.

  1. The bar is lowered and other employees will naturally gravitate towards the new status quo.
  2. The ones that value their work ethic may want to leave to be in an environment that supports their potential.

And lastly, but certainly not least, anyone that does not align with your company's vision and core values, will only be a hindrance to your organizations overall success. A bad hire can be a stain on your image and reputation for far after they've been separated from the company. 

The best way to combat these dangers is to solidify your recruitment and onboarding processes to be as diligent as you can about finding the right fit and giving your team every tool and resource possible to succeed. To learn more, visit us at www.operationsagency.com/class .