As expensive as it is to replace a bad hire, the money isn’t what concerns employers most.
In a Robert Half survey, chief financial officers (CFOs) said the single greatest impact of a poor hiring decision is lower staff morale (41%), followed closely by lost productivity (34%). Monetary costs came in third, garnering 19%.
“In the current hiring environment of talent shortages, employers may feel pressured to cut corners in order to speed up the hiring process,” says Greg Scileppi, president of Robert Half’s international staffing operations.
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Although acting with a sense of urgency is important, he says following a clearly defined hiring process and using the right resources can help prevent unnecessary headaches often associated with rushed decisions.
“A bad hiring decision can often cause a negative ripple effect through the organization,” adds Scileppi. “Hiring a bad fit or someone who lacks the skills needed to perform well has the potential to leave good employees with the burden of damage control, whether it be extra work or redoing work that wasn’t completed correctly the first time. The added pressure on top performers could put employers at risk of losing them, too.”
The survey is based on interviews with more than 270 CFOs from a random sample of Canadian companies.
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