When you align with the right employee, it adds tremendous value to your workforce and your company. Unfortunately, when you hire the wrong candidate, it can drain your productivity, time and budget.
Use our calculator to find out the real cost of a bad hire, and contact us to learn how we can ensure you align with the right accounting and finance and legal technology professionals every time
According to the U.S. Department of Labor, the average cost for each bad hire can equal 30 percent of that individual’s annual earnings. Thus, when you hire the wrong mid-level accounting manager or application developer earning $60,000, the real cost to your organization will be $78,000.
There are several ways that making the wrong hire can negatively impact your budget. Here are some examples:
- Initial onboarding expenses: When you first bring a new employee into your company, you spend considerable time and money to get them up to speed. These expenses include training hours that could have been devoted elsewhere, salaries paid to the trainers and printed onboarding materials. If the employees never do catch up, these represent sunk costs.
- Recruiting efforts: The amount of time and money your hiring managers spend pursuing, interviewing, screening and making offers to candidates can never be recovered.
- Productivity drains: Even one bad employee can have a disastrous effect on a strong team. That’s because other employees must pick up the slack and take on additional responsibilities. The result is a loss of efficiency and heightened employee dissatisfaction, the latter of which can lead to additional turnover.
By working with the recruitment and executive search experts at Parker + Lynch can substantially reduce your risk – and costs – associated with hiring the wrong employee. That’s because our unique approach to recruiting – the art of placement – ensures alignment between positions and professionals, business goals and personal aspirations and companies and job seekers.
To learn more about our services and solutions, and to find out how we can help you lower your hiring costs, contact us today.