The 5 Hidden Costs of Mis-Hires and How to Avoid Them
You might be aware that a mis-hire carries with it substantial financial impact that can last for a lot longer than it should. Here we look at the hidden costs to your business a mis-hire can create, these can last months after the financial costs are absorbed.
- Employee Morale Suffers
“You’re only as fast as your slowest person” while this statement is often untrue, it can be used as a strong representation when a business hires the wrong people. A major cost of hiring the wrong people is often watching your outstanding staff slowly slip into poor habits and lower rates of productivity. Worse than that, your good staff can depart your business before you’ve even had time to rectify your mistake. - A Poor Customer Experience
Whilst there are many internal negative effects, we need to consider the impact your mis-hire will have when they encounter clients, vendors, suppliers, partners and customers.
Brand and reputation damage can hurt the business for years to come.
Strong training and induction programs can curb the impact of bad customer interactions but a mis-hire with a lame attitude will never fully appreciate how a customer perceives the business or whether they will be a repeat customer. - Culture
A staff member who cannot fit into the team or lacks vital cognitive abilities will not be able to create the quality of work at the level, finesse, and innovation that the business has come to expect by its current employees. As a result of the team will suffer by having to either walk on egg shells around the new staffer creating an environment of hostility and/or frustration. - A Culture of Micromanagement Develops
When the management team are forced to devote large amounts of their time training, overseeing and hand holding employees it often undermines their style of management and increases a culture of micromanagement.
This in turn decreases the effectiveness of not only the management team but the staff. The last thing a business needs is a culture of micromanagement leading to lower levels of productivity. - Rushing to the Next Hire
We often only consider the impact a mis-hire has at the time of their employment, but this is often not the case. Once the mis-hire is no longer on the team, the manager often feels an extra sense of urgency to hire a replacement because of the loss of productivity, morale, and financial investment.
What happens when the hiring process is hurried? Too often, another mis-hire is made, starting the downward spiral all over again. Therefore, it’s important to take time in the hiring process and consciously hire the right employee for the organisation and the position. What seems like a fast hire can lead to a slow, painful, and costly recovery from a mis-hire if you’re not thoughtful about the process.
If you’re ready to stop mis-hiring, contact us today to find out how!
