Hiring the right people
Many businesses owners’ biggest nightmare, and with good cause, is to have hired the wrong person for the job. Not only is this time-consuming but the pain inflicted on team morale, not to mention your budget sheet, can be high.
The negative impact can have a ripple effect that goes across the business in many ways.
Here, at Halo Trade Group, we stress the importance of hiring well and assigning enough time and resource to the recruitment process.
Financial Impact
Hiring the wrong person can cost a company between 2-3 times the person’s annual salary – a cost that is scary to contemplate and even scarier when you’re faced with it in real life.
Not only that, hiring the wrong person the first time means that you could double that cost for rehiring again. Then there’s the severance pay, which is the cost you’ll have to shell out to get rid of them. This depends on their salary (so, it’s riskier to hire the wrong senior staff).
It’s a case of throwing good money after the bad. The old saying sums it up, “if you think it’s expensive to hire a professional, wait until you hire an amateur”.
Demoralising effect on employees
Then there’s the non-financial side of things and this is actually what you should be more worried about.
Questions asked, eyebrows raised, rumours started and worried looks. The feeling of ,“is this going to happen to me”, can spread through the team.
It’s the demoralising effect on employees that will have a huge impact on your business, possibly even long-term. The added pressure of team members having to rectify unfinished (or unsatisfactory) work can actually prove more costly again.
Your team morale can be hugely affected by a bad hire. What it means for you as a business owner is that you’ll spend large amounts of time (and money) trying to get the new hire settled in on the new job, whilst running the risk of your existing staff becoming disengaged and dissatisfied.
If you’re dealing with a bad fit to the company, you may also find they don’t get along with the rest of the team.
Imagine the potential impact on your reputation and even growth plans, if a bad hire leaves on a sour note and takes with them a negative view of your company.
