The cost of a bad hire averages $50,000, according to the results of a recent CareerBuilder survey.
Out of more than 6,000 hiring professionals worldwide, more than half said they have felt the effects of hiring someone who turned out to be a poor fit for the job or who did not perform it well.
Twenty-seven percent of the U.S. employers surveyed said that just one of these bad hires could cost their company more than $50,000.
“When you add up missed sales opportunities, strained client and employee relations, potential legal issues, and resources to hire and train candidates, the cost can be considerable,” said CareerBuilder CEO Matt Ferguson.
So how to avoid becoming a statistic in the above survey?
- Get VERY clear on what role you are hiring for: Design your firm for growth, not for today’s pain. Identify the roles necessary to have a successful business; how many hours does each role require? Which roles naturally combine? Who on your current team fits into a role based on their StrengthsFinder and Kolbe results? Who can grow into a role that you can begin to groom for now? What can be outsourced or handled by technology? What’s left that doesn’t fit into a job description box?
- Get VERY clear on what is in the way: Money to afford this person? Lack of confidence that you can generate the income every month to afford this person? The realization that if you stop hiding out in the “admin” stuff, you will have to start doing the “business owner” stuff?
- Get VERY clear on what is at stake if you don’t make the investment: Make a list of all business activities at stake if you don’t invest in a new hire. Put a potential dollar amount next to each activity and the revenue potential. Don’t make it into a project or pull up QuickBooks; just put down your gut reaction guess on this. If you could free up 20, 30 or 40 hours a week, what else could you be focusing on as the business owner? Trust us, if you give up the crap you are doing and shift that energy and time elsewhere, the business (and money) will come. If you continue doing what you have always done, you will get what you have always gotten. That’s just real truth.
Yes, your overhead will go up. Yes, you are responsible for feeding this person, even if the money doesn’t come in and you can’t feed yourself. We acknowledge the real fear that stops you. But once you make the leap of faith, the net will appear. Not once over the last 20 years have we failed to place someone who didn’t immediately generate the ROI within week one. The trick is just getting over the uncertainty and the initial fear. If your hiring and vetting process is based on a process vs. emotionality and/or pain, and you attract the superstar based on a proven methodology, you won’t ever have to take that work back.
And trust us, once you get the freedom you’ve been craving, you will never go back to the rugged individuality model.
Our goal is that your business never makes the headlines as a case study for what bad hires will cost you. There are proven ways to avoid the mucky outcome of a bad hire and begin to hire for growth. For a complimentary “How to hire (and fire) with confidence and integrity,” email firstname.lastname@example.org to schedule your complimentary call.