How Much Is The Wrong Hire Costing Your Business?

When in comes to business decisions, one of the most costly mistakes a company can make is hiring the wrong applicant.

It’s an unfortunate reality that many businesses are making that very mistake—more than 74% of employers say they’ve hired the wrong person for a position.

And that’s costing businesses a huge amount of money.

In fact, according to a survey conducted by Career Builder, companies lose an average of $15,000 on every bad hire. That number only increases as the salary of the worker goes up.

The Real Cost: More Than Just Money

On top of the direct costs, losing an employee also has indirect costs for your business. The cost of replacing an employee is high—lost time and productivity, reduced team morale and performance, and costs for training replacement employees all have a significant negative impact on the bottom line of your business.

We all know the saying: time is money. Just one bad hiring decision can set your business behind by half a year in terms of employee performance. That’s because in Canada, it takes companies an average of 52 days to fill open positions and 5 to 6 months for new employees to reach full productivity. So it’s no surprise that lost time spent playing catch-up is costing business money every day.

That’s why it’s important to make sure your company has a proper screening process in place.

Uncover More About Potential Hires

In order to avoid a costly hiring mistake, it’s important to gather as much information about potential candidates. Past performance, work habits, strengths and weaknesses, and attitude can all tell you what kind of worker a potential hire will be. A proper background check can uncover any red flags in your applicants so you’re able to make the best hiring decisions for your business.

View our infographic to learn more about why employers make bad hires and the true cost it has on your business.