Did you know that hiring the wrong person could cost you more than you think? And it’s not just the companies money you could be losing. A bad hire can sacrifice the overall productivity, harm team morale, and impose additional burdens on other staff members.

According to research by Oxford Economics and Unum, the average cost of a ‘bad hire’ is around £30,614. This is based on a salary of £25,000 or more a year. This not only includes the cost of recruitment as there are so many more costs hidden behind the bad hire. 

What is a bad hire? 

A bad hire is the unfortunate situation where a new employee fails to meet the expectations set during the hiring process. This can be for many reasons such as inadequate skills, unacceptable performance, or an inability to settle into the company or align with the company’s culture. 

Hidden costs of a bad hire? 

These hidden costs highlight the importance of a thorough and strategic hiring process to minimise the risk and impact of bad hires.

  • Reduced Team Productivity: When a new hire is not performing as expected, it can slow down project timelines and decrease the overall productivity of the team.
  • Negative Impact on Morale: A bad hire can adversely affect the morale of other team members, leading to a drop in workplace satisfaction and potentially increasing turnover.
  • Resource Allocation for Training and Support: Additional resources often need to be allocated for training and supporting a bad hire, diverting them from other productive uses.
  • Cost of Recruitment and Onboarding: The entire process of recruiting, interviewing, and onboarding a new employee is costly, and these investments are lost with a bad hire.
  • Potential Customer and Reputation Impact: If the bad hire interacts with clients or represents the company publicly, their performance can have a direct negative impact on customer satisfaction and the company’s reputation.
  • Increased Workload for Other Employees: Other team members may need to take on extra work to compensate for the bad hire’s lack of productivity or skill, leading to overwork and possible burnout.

How to spot a bad hire? 

Preventing a bad hire is crucial for any organisation, and it involves a strategic approach to the hiring process. To spot or prevent a potential bad hire, heres some of the things that you can consider:

  • Background Checks: This includes verifying past employment, educational qualifications, and references. 
  • Implement Skill Assessments: Practical tests or assignments related to the job can provide insight into the candidate’s abilities and problem-solving skills.
  • Focus on Cultural Fit: Understanding how a candidate aligns with the company’s values and culture is as important as assessing their technical skills. Behavioural interview questions can help determine this fit.
  • Use Structured Interviews: Standardising the interview process ensures that each candidate is evaluated on a consistent set of criteria, reducing the influence of biases.
  • Look for Red Flags: Be wary of candidates with a history of short stints at multiple companies, giving overly vague answers etc.
  • Involve the Team: Including future teammates in the interview process can provide additional perspectives on how well the candidate might integrate with the team.
  • Trust Your Instincts: Sometimes, it’s important to trust your gut feeling about a candidate, especially if something doesn’t feel right despite their qualifications on paper.

By incorporating these strategies, you can significantly reduce the chances of a bad hire. 

If you would like help with your next hire and have the backup of a rebate should a candidate turn out not as expected then get in touch with us on 01925 377 878. Peel Technical recruitment provides our clients with access to a highly-skilled specialist engineering & construction talent pool. We provide our candidates with connections to some of the best companies in the industry.