What is the cost of a bad hire?
The cost of a bad hire with a DIY approach to recruiting staff, is mainly associated with hiring mistakes. The effects of hiring the wrong person can be catastrophic for your business in so many ways.
Generally the worst hiring decisions come when you are the most desperate to bring someone on board. Making a premature selection decision only prolongs the selection process. Don’t allow the pressure of a vacancy to influence your decision unduly. It is better to take the time to do it correctly from the beginning than to sacrifice quality in hiring.
“Hire in haste, repent at leisure”
How a bad hire hurts your business
Making a poor hiring decision can also cost your company in other less tangible ways. There are productivity losses in the shape of low employee morale and extra time spent on performance management, lost business relationships and goodwill, as well as other potential costs for unemployment compensation, severance pay or even legal fees.
When you hire someone, you want it to be the right someone the first time. Imagine investing time and money to hire a new employee, only to find out they aren’t right for the position and you have to do it all over again.
The costs of bad hiring decisions can sneak up on your business and ambush all of your good efforts as a manager or business owner to recruit and retain good people.
How much will a bad hiring decision put me back?
It is estimated that the average cost of a bad hiring choice is around 30% of the person’s first year’s potential earnings. Other experts agree, but this is only the case if the bad decision is discovered and corrected during the first three months of the new employee’s contract. If the mistake isn’t recognised and addressed until later, it could cost considerably more. That is why it is essential to ensure that the candidate’s on-boarding period is well structured and is an extension of the assessment process. Once a new employee passes this three month period any moves to terminate their employment or manage them out of the business can be time consuming and complex.
How to make the correct decision when recruiting
If you are looking for a cost effective way to make the correct deicision when recruiting. Prospect Health is your one-stop shop for all your Primary Care recruitment needs. If you’re looking for Permanent Salaried or Partner GPs, Pharmacists, Nurses or Locum and Contract professionals for your practice, we offer a hassle free service to help you recruit for these roles.
- We can find Primary Care Staff to fit your individual practice needs
- We have over 40,000 Primary Care professionals on our database, more than any other agency in the UK
- We offer on-going support and advice from a trusted and credible recruitment partner
- This is all managed by a specialist, dedicated consultant to ensure you receive a fully account managed personal service