The Cost of a Bad Hire is much more than you thinkTalentfore
“One rotten apple spoils the barrel”. We have all heard about this proverb. The inherent meaning of it is that one single lousy element in a group can destroy the entire pack. When it comes to recruiting employees, this is a very vital lesson every company or organisation should take into consideration. The company will be compelled to pay a big price for the misdoings of bad hire.
Therefore, it makes the task of the Human Resource Team extremely difficult and tedious. They are the ones involved in hiring employees, so the status of the company rests in their hands in some ways. A bad hire will surely make the whole company suffer, although it is not possible to bring in good employees every single time. The recruiters, therefore, are trained in such ways so that they can avoid less-deserving candidates.
Let us find out the consequences and what a bad hire costs the company:
- Inadequate Performance: An organisation runs on the performance of each employee individually. Performance of the team is evaluated by taking the average of everyone’s performance. A bad employee will never perform well. He/she will fail to hit the daily targets or maintain the standards of the job role. The performance of the team gets affected on the whole and the organisation as well. Bad employees take much time to learn new things and accept innovative ideas. They are not capable of adjusting to the company’s culture, and as a result, they fail to perform well. Despite all the guidance and training offered to them, their work will always lack in quality.
- Waste Of Time And Resources: Organization’s work on two keywords ‘Efficiency’ and ‘Productivity’. Every day is important for the growth of the organisation. The whole process of hiring the candidate, training him and monitoring them is all a waste if they do not turn out to be a vital resource. A bad hire is going to do no good for the company in any way. It is, in fact, a sheer waste of time as well as resources for the company. A company will undoubtedly invest an equal amount of resources on the employee. However, if the outcome or the performance of the employee fails to meet the organisation’s requirements and expectations, then spending time and resources on them will be nothing but waste.
- Harms Other Employees And Teams: Each team is assigned a specific task to make the complete process of delivering a product simpler. Each unit is assessed according to their performance. A group of hardworking employees produce the best results, but once a bad hire gets added into the team, the entire team needs to back up that teammates work. This will create chaos among the team members. Every job profile and group in a company or an organisation are interconnected. In some ways, all the employees rely on each other. Bad performance or failure on any one member’s part can ruin the work of others as well. The wrong employees will often create confusions among their team members, thereby restricting them to meet their respective goals. They will usually be unavailable at the office as a result of which a lot of their as well as their colleagues’ work will remain pending whose job is dependent on them. Therefore a bad hire will have negative impacts on other employees too.
- Drives Away Qualified Employees: A lousy employee is undoubtedly capable of breaking the whole company machinery down. He/she will chase away the existing good employees. Yes, this is possible, because the presence of less-deserving employees will demotivate the good ones to stay back in that company. They will begin to see that the work culture is getting degraded because of individual bad employees and believe that they deserve a better place to work in instead. The right employees will not be able to perform well in the presence of the bad ones, and they will not hope for any growth among themselves as well as in the company. They will instead seek more prominent and better avenues.
- Disfigure Staff Morale: A bad hire can harm staff morale, which is very dangerous for the company. A lousy employee due to lack of knowledge and abilities will not be able to perform their task well. As a result of this, other employees will be made to work more to cover for the struggling employee. If they are asked to take extra workload by getting the same salary, there will arise some tension between them and the bad hire as well as the management. As a result of this, staff morale will go down, and the work environment will degrade. The situation will affect the atmosphere of the workspace and add a negative insight into the organisation. A bad hire can break a team and create many issues among teammates and the team lead. They are thus making a part of the organisation dysfunctional. It will affect the performance of the organisation as a whole.
- Affects the cost of turnover: Once a candidate is recruited, there is not much you can do about his performance in the initial stages. This period of poor performance can mostly affect your company’s turnover. There is money that you spent on hiring that turned out to be a bad one. After the recruitment, you need to train and mentor the candidate for a couple of months. This is a complete waste of time and money. You need to send in paychecks irrespective of their quality of work. A bad hire means low performance affecting the turnover of your company. Also, it is an opportunity loss. Every employee that you hire needs to add to your profits. Hiring a candidate who brings down the value of the company is not what you want. The performance of every candidate is accountable, hence a low throughput of one can bring down the entire team.
- Reputation: That one candidate you hire can add to your organisation’s value or bring it down at once. The company does not run on just one candidate, but one low performance can bring things to a halt. It is important to note that every employee has his/her targets and works to meet them daily. A bad hire will burden things for the rest of the team as their performance is not up to the mark. They are leading to creating differences and conflicts within the group and result in wrong output. This defective individual will be the reason behind your dropping sales. While running an organisation, your company is remembered for the consistency of the quality of products and services. Having employees of low performance will bring down the reputation of the company. A drop in the status of your organisation means a reduction in your position in the marketplace as well.
- Decreased productivity: Every minute is important when in an organisation. Every employee must deliver their best for the organisation to grow. The performance of every candidate matters in the progress of an organisation. In today’s competitive world, organisations daily performance gets evaluated and analysed. The performance must better with every passing day. A bad hire can bring the whole organisations performance down. In the end, the employee works for the organisation. The efficiency of work done by the team and the organisation comes down because of that one bad hire. For the perpetual growth of the company, you must be cautious and avoid taking risks to land up with hiring a bad hire
The recruitment process can be a tedious task. That does not mean that you make a terrible hire. It is crucial to have enough employees in an organisation. It is even more critical to get the right candidates. An organisation needs to have eligible and talented employees for it to grow. Hiring a bad candidate will not only damage the vibe of the workplace but also drops the productivity of the company. It would be best if you kept in mind that a ‘NO HIRE’ is better than a ‘BAD HIRE’. You need to pay the employee irrespective of the quality of work they deliver. This will affect the finances of the organisation. An employee needs to add profit to the organisation, and they are paid for the effort and time. If the work they do is not adding value, then you as an employer are at a loss. A bad hire can be of bad influence to the teammates as well. The environment of the entire workspace will be damaged because of one bad hire. Having a bad hire can cost the position of the organisation in the marketplace. Hence, hire a candidate who you are confident of being most eligible and promises to deliver the best.