Sixty-nine percent of employers reported that their companies were adversely affected by a bad hire in 2012, with 41 percent of those businesses estimating the cost to be over $25,000. Twenty-four percent said a bad hire cost them more than $50,000, according to the report.
“Whether it’s a negative attitude, lack of follow through or other concern, the impact of a bad hire is significant,” said Rosemary Haefner, vice president of human resources at CareerBuilder. “Not only can it create productivity and morale issues, it can also affect the bottom line.”
According to the survey results, the price of a bad hire adds up in a variety ways. The most common being:
- Less productivity – 39 percent
- Lost time to recruit and train another worker – 39 percent
- Cost to recruit and train another worker – 35 percent
- Employee morale negatively affected – 33 percent
- Negative impact on clients – 19 percent
- Fewer sales – 11 percent
- Legal issues – 9 percent
To find out more on how businesses classify what makes someone a bad hire, and the top reasons for why companies make bad hires, take a look at the full report here.
For information on how employment screening can help minimize these types of hiring mistakes at your workplace, contact us today.