So, you’ve hired a new employee. It doesn’t take long to find out they’re not quite right for the job, and they either quit or are let go. This is a common occurrence for many hiring managers, and it could be costing employers millions of dollars each year.
So how much really is the cost of a bad hire? That can be difficult to determine, but it’s always extensive. Brandon Hall Group, a human capital research and analyst firm, recently identified the variables that go into calculating the cost to hire and then replace a bad hire. They include:
- Recruitment advertising fees and staff time
- Relocation and training fees for replacement hires
- The negative impact on team performance
- The disruption to incomplete projects
- Lost customers
- Outplacement services
- Weakened employer brand
- Litigation fees
Another firm, Link Humans, found that hiring and onboarding a new employee in a critical role can cost as much as $240,000. While this staggering amount may not be the true cost for most businesses, there are also other factors to consider. The negative impact a bad hire can have on a team can lead to a business’ other employees suffering from low morale or even losing their best employees.
One of the first steps in ensuring that a hire is right for the job starts well before the final interview. Resume, or employment and education, verification can weed out applicants who have less-than-honest credentials. Studies have found that nearly one-third of job seekers fluff up their resumes with false work history or education.
Resume verification allows employers to ensure that their new hire truly has the experience they claim to, and the service is often bundled with a background check. For a free background check and resume verification on your next hire, contact KRESS today.