Hiring the wrong staff costs more than you think!!!
Let’s look at the cost of a bad hire. It is estimated that the cost of a wrong hire can be up to 3 times the salary of that employee – this means hiring a Sales person on 35k could potentially cost you 100k if you employ the wrong person. The potential costs are split in obvious costs and the hidden ones.
Obvious costs include:– Your time spent during the recruitment process – often ignored
– Advertising the job in the papers or online – Irish Times don’t do free adverts
– Recruitment agency fees – those bloody agencies – money for nothing!!
– Training expense – very rare than a new employee hits the ground running.
– Salary & benefits during time in the company – yes that’s right you pay these poor performersHidden costs include:
– Managing poor performance – How much do you enjoy babysitting?
– Negative impact on co-workers – I know one employer who fired his top sales person otherwise he would have lost about 7 staff.
– Lost customers – They are fragile little things
– Missed opportunity and potential sales – Oh I didn’t want to push him.
– Compensation, severance and legal fees – We all know what the tribunals cost.
– Cost of recruiting and training a replacement – Lets start again from the beginning.
You can say I am not hiring a sales person but I know of an administrator who priced a part wrong – cost 500k and I know of an accounts person who forgot the VAT returns – big fine. There are many examples.
My father is a carpenter and always says – “measure twice and cut once”
Want to ensure you don’t make a bad hire – click. Measurability offers all you psychometrics and assessment need including personality questionnaires, ability and aptitude tests and motivation questionnaires.