Chicago, U.S.A. — Hiring the right person to fill a position can be a difficult decision to make, and a new CareerBuilder study shows the cost of choosing incorrectly can be high. Sixty-nine percent of employers reported that their companies have been adversely affected by a bad hire this year, with 41 percent of those businesses estimating the cost to be over $25,000. Twenty-four percent said a bad hire cost them more than $50,000.
“Whether it’s a negative attitude, lack of follow through or other concern, the impact of a bad hire is significant,” said Rosemary Haefner, vice president of human resources at CareerBuilder. “Not only can it create productivity and morale issues, it can also affect the bottom line.”
Effects of a Bad Hire
The price of a bad hire adds up in a variety ways. The most common are:
Characteristics of a Bad Hire
When classifying what makes someone a bad hire, employers reported several behavioral and performance-related issues:
Why Companies Make Bad Hires
The most common reason associated with a bad hire is rushing the decision process. Two-in-five hiring managers attributed a bad hire to pressure to fill the job opening.
One-in-four employers (26 percent) stated they weren’t sure why they made a bad hire and said sometimes you just make a mistake.