Erin Borgerson on Hireology.com
If you’ve been in business for a while, chances are you’ve made at least one hiring mistake you wish you could take back. Whether a new employee was a complete disaster or just didn’t live up to expectations, a poor fit can be costly: The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30 percent of an individual’s first-year potential earnings.
The Negative Impact of Bad Hires
As you think about the expenses associated with bad hires at your company, there are a number of factors you may want to take into account. Among them:
Poor employee morale
According to small business owners surveyed by staffing firm Robert Half, the biggest impact of a bad hiring decision is lower staff morale. Employees who have to work with less-than-stellar new colleagues can easily feel frustrated having to deal with behavior issues or unsatisfactory work. Often, employees have to pick up the slack for underperformers, which can create resentment and even turnover.
Lost productivity
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