The cost of a mis-hire can often have a substantial impact on a business, and it is not only financial. When a mis-hire does occur, it can cause a loss of productivity, unnecessary delays, and increased costs for the business. Here we will investigate the impact a mis-hire can have and suggest strategies to help you avoid these drawbacks.
Finances are not the only cost of a mis-hire, but they are the easiest to quantify – plus, hiring is
expensive.
Firstly, you must account for the total costs in hiring the person, which can include:
Next there is the compensation that would be paid to the hired candidate for their time at the
company – this includes their base salary, as well as any benefits, bonuses and severance packages
they may be entitled to.
This does not include all costs associated with the training and onboarding of the mis-hire, which not
only requires resources, but time too – time is money, and you’ll have to do this twice!
There could also be several additional hours of time wasted dealing with work produced by a bad
hire, whether that be going over and double-checking work, rebuilding relationships with
clients/customers or team members picking up the slack for under performers. This can eventually
negatively impact the culture within a business.
Company culture is one of the most important aspects of any business and can make the difference
in hiring the best candidates, as well as keeping hold of existing high performers.
Hiring someone without the required skills or desired personality can lead to team morale declining,
employees questioning the future of the business or their decision making, and a lack of trust and
communication between team members.
A company’s culture is often built around shared values across the business. When a new employee
does not align with this vision, it can create a disconnect between peers.
This in turn, leads to a poor company culture, with low productivity and job satisfaction.
1. Be Thorough.
Ensure you have a thorough process in place when it comes to hiring new staff. This includes
conducting several rounds of interviews. This ensures you have enough time to find out everything
you need to about a potential hire, as well as giving the candidate time and information to ensure
they are making the right decision should they be successful.
It is also important to check references and vet candidates carefully. Reaching out to previous
employers is a free resource that can give vital insights into the prospective employee’s past
performance.
2. Clear and honest expectations.
Have a detailed and honest job description which is easy to understand and highlights the key
responsibilities of a role. This ensures candidates can make an educated decision before applying.
Remaining honest and communicating clear and concise expectations at the beginning of a process
and at the first interview stage sets both parties up for a successful interview process.
3. Be competitive.
Top quality candidates will often require higher compensation. Ensuring you are offering
competitive salaries and benefits can ensure you do not get priced out by your competitors.
4. Work with a recruitment agency.
Working with a specialist recruitment agency is a great way to ensure you avoid a costly and
disruptive hire.
A partnership with a reliable recruitment team enables you to access the strong relationships
recruiters have spent weeks, months or years building with industry specific candidates who have
already been vetted, qualified and are open to work.
All this is on top of the valuable industry insights, salary benchmarks and recruitment advice as
recruitment expert can provide.
If you want to guarantee avoiding the cost of a mis-hire and work with PaymentGenes Recruitment –
please get in touch with one of our expert recruitment consultants here.
Join us to explore the pivotal role of company values in the competitive landscape of Payments and FinTech, we advocate for their integration into organizational strategies to attract consumers, talent, investors, and partners effectively.
