TRTP: The Cost of A Bad Hire
There have been lots of studies and conversations around the costs of a bad hire. Studies take into consideration the cost of retention, retraining, re-advertising, recruiting, salary, etc. But what about the other, less tangible, costs of a bad hire?
Culture: What if the person is such a bad fit for the organization that they are actually destructive to your culture? Culture is something that can take months and years of intense focus to build, but just one “bad apple” can bring it down.
Other Employees: What if they recruit other members away when they leave? Suddenly you’re left with multiple open positions and job postings instead of just one. We were discussing this recently with a client.
Reputation: When someone is not bought into your organization’s mission, values, and culture it can hurt your reputation. When those folks leave the organization (or even sometimes while they’re still there), they can start to spread rumors about the company that can impact the public perception.
As you’re thinking about reducing costs, consider your hiring practices. It is crucial to look at your organization as a whole when you’re considering candidates. Ask yourself what does a “fit” in this organization really look like? What are the key traits or characteristics that I’m unwilling to budge on? It’s hard to do when you have a vacant position because we always want someone to fill it FAST! But the long term effects can cost you!