There are plenty of reasons to avoid a bad hire, but the high cost may be the most significant. Not only will a bad hire affect production and employee morale, but it can also greatly impact the money you spend, the profits you bring in, and every other financial aspect of your organization. But how exactly do you calculate this cost? Here are the details to consider to help you avoid a negative situation with your next hire.
Time Spent Fixing Mistakes
If a bad hire is making a lot of mistakes, you may find yourself spending an inordinate amount of time fixing them. And time is money in your business. At the very least, the new employee is spending twice the time on any project even if they are making the fixes themselves. Any time you, the new employee, or other employees spend on fixing mistakes, you’re not concentrating on other needed tasks, which can impact cost and revenue.
Negativity and Team Morale
A bad hire will also quickly affect the rest of your team. They don’t need to have a negative attitude or toxic behaviors to be a negative influence. Even if the employee is nice, if they can’t handle the tasks at hand it will quickly affect the morale of the team who feels it’s their job to clean up the messes.
Incomplete or Poorly Completed Projects
When projects are done poorly, or only half done, this can also influence the productivity of everyone involved. In fact, the biggest problem is you may not notice a project is incomplete or poorly done until it is far too late to fix it. This can cause a problem far down the line that will become a bigger issue with your costs and time management.
Lost Revenue from Customers
If your new employee’s job impacts customers in any way, you may find yourself doing damage control. Worst case scenario, an angry customer leaves your company to buy the same products or services elsewhere. Even if you take action against the bad hire and fire them for the problem, you may have already lost a customer and the money they brought into your company.
Your Company Reputation
Lastly, a bad hire can have long-term repercussions on your company reputation. If just one customer felt affected enough to leave, they are far more likely to spread negative reviews of your company than positive ones. This could mean new customers who were on the fence about the products and services you offer may go to another company before choosing yours.
Have you considered the cost of a bad hire? Contact Harvard Resource Solutions in Troy MI to start the search for the right talent.