Estimating the Cost of a Bad Hire
Have you ever stopped to figure out exactly how much time you have to invest in hiring an employee? If not, some factuals might surprise you – we’re still amazed by the cost of a bad hire and stats like these:
Forty-one percent of companies estimate that a bad hire cost them more than $25,000. One in four say it cost them over $50,000.
and these estimates are conservative.
Calculating employee turnover costs is tricky, but once you add up:
Cost of time spent writing/posting jobs, reviewing resumes & interviewing candidates
Cost of time spent training & providing orientation
Cost of salary, benefits and perks
Cost of providing severance or (yikes!) handling a lawsuit
Then add on the often overlooked costs of making the wrong hire:
Lost clients and new business opportunities
Sub-par work and rework due to mistakes
Inefficient resource management
Lower team morale
The numbers are daunting and impact both hiring managers and their teams.
At GreenLight Staffing we spend our time connecting the best professionals in the industry with great companies. Call us today and avoid the cost of A Bad Hire.