Bringing a new employee onboard is akin to investing in a new relationship. However, when a hire turns out to be a bad fit, both tangible and intangible resources are squandered. According to the U.S. Department of Labor, bad hires can cost up to 30% of an employee’s first-year salary. What’s more, failed talent acquisition takes its toll in terms of productivity and morale. Your entire firm, including all of your other employees, suffers when a hire goes awry.
In this article, we will break down the cost of a bad hire in the legal industry and discuss how to avoid making these costly mistakes.
The financial cost of a bad hire can be significant. If the U.S. Department of Labor is correct, a new hire brought in on a $100,000 annual salary could cost you $30,000 if things don’t work out. Some legal staffing firms estimate that this figure is, in fact, much higher. Jörgen Sundberg, Founder & CEO of Link Humans, for instance, puts the cost of a new hire at $240,000. For a small firm, losing a sum like this is a potentially lethal blow.
In addition to the employee’s salary, you may also have to pay for recruiting, onboarding, and training costs. If the employee is terminated, you may also have to pay severance.
The non-financial costs of a bad hire can be even more damaging. A poorly performing employee can reduce productivity, damage client relationships, and harm your firm’s reputation. They can also demoralize your other employees, who may feel like they are carrying the weight of the team.
The Cumulative Effect:
One bad hire can have a ripple effect throughout your firm. When one employee is underperforming, it can create a drag on the productivity of everyone else. It can also lead to a decrease in morale, as other employees may feel like they are not being supported.
In addition, one bad hire can lower the bar for everyone else. If an employee is allowed to get away with subpar work, it sends the message that others do not need to meet the same standards. This can lead to a decline in the overall quality of your work.
How to Avoid Bad Hires:
The best way to avoid bad hires is to have a thorough and rigorous hiring process. This includes carefully screening candidates, conducting multiple interviews, and checking references. You should also be clear about your expectations for the role, and make sure that the candidate is a good fit for your firm’s culture.
If you are not sure how to conduct a thorough hiring process, you may want to consider hiring an outside recruiter. A good recruiter can help you identify qualified candidates and assess their fit for your firm.
Book a clarity call with me today to learn more about how to improve your hiring strategy and increase your highly qualified talent acquisition.