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Posted on Mar 19th 2019
The Price of the Wrong Hire
Whether your business is a small team of 10 or a growing organization of 50 or more, you've no doubt considered the cost of your people.
Not just salaries, benefits, and workers' compensation, but likely training, technology, overhead, and unanticipated costs as well.
One of the largest employee expenses you can incur is the cost of hiring the wrong person.
This cost is minimized the earlier on you realize and rectify the mistake. Still, in most instances, it's difficult to avoid at least several months of that employee's salary or hourly rate as the toll for the error.
Hiring the wrong person doesn't incur expenses only after the employee is terminated or quits, and you're required to re-staff the position. The cost of bringing the wrong person on board begins much earlier on, and can include lost dollars in:
- Incomplete or incorrect work
- Lost or unhappy clients
- Other team members' time
- Team morale
- Recruiting, interviewing, onboarding and training your employee's replacement
Business needs dictate the pace by which employers bring on new people. The trick is making sure you're never backed into a wall and forced to make rushed, uninformed hiring decisions. Waiting to find and hire the right person may save you thousands in the long run over rushing to fill seats.