RSS Feed


More Articles: Latest Popular Archives

The Cost of Hiring a Bad Fit

Contributor: |

No company wants to make a bad hire – someone who is not a good fit for the organisation and has a negative impact.

Yet, 95% of organisations admit to hiring ‘bad fit’ employees each year. Companies in growth mode want to fill positions as quickly as possible and often do not think about the implications of a bad hire. They also underestimate what the true cost is and how many variables can leave a lasting negative impact.

A recent study by Brandon Hall Group commissioned by Glassdoortitled, “The True Cost of a Bad Hire,”set out to uncover the devastating impact a bad fit hire can have on organisational growth and performance. So, what options do organisations have? How can they better identify bad hires early in the recruitment process and what strategies should they consider?

Below are a few recommendations companies should consider to improve the quality of hires and eliminate the cost of a bad hire, based on Glassdoor’s commissioned report.

Take a strategic approach to hiring. Organizations that want to eliminate the cost of a bad hire should standardise the interviewing process and provide hiring managers and recruiters with the right tools to ask questions and evaluate candidates. Sixty percent of organisations that leverage best-practice guidelines for conducting interviews have an optimised recruitment strategy (one that aligns with business objectives), compared to 10% of companies without interview guidelines.

Strengthen Your Employer Brand. An employer branding strategyshould be a priority for any company looking to reduce the cost per hire. Organisations that invest in employer branding are three times more likely to make a quality hire. When an employer brand can accurately reflect the company culture, organisations will have an easier time attracting the right talent.  

Consider the Candidate Experience. Organisations that invest in a strong candidate experience improve their quality of hires by 70%. In many industries such as retail and professional services, candidates are also customers. Organisations should put the same rigor into the candidate experience that goes into the customer experience to ensure these individuals will perform, stay motivated, and want to stay with the organization.

Assess Candidates Often. Only 5% of organisations evaluate candidates during the sourcing process. The key to successfully mitigating the risk of a bad hire is to evaluate candidates often in the recruitment process, starting with the sourcing process. If organisations are able to identify potential problems with a candidate early on, they can reduce the costs associated with screening, assessing, and interviewing that individual.

Look Beyond Hard Skills. Organisations often look only at the skills and competencies posted on a job description. In doing so, they fail to learn whether the candidate demonstrates behaviors consistent with the values and culture of the organisation, has potential for leadership – or behaviors or values that might limit advancement. 

Receive more HR related news and content with our monthly Enewsletter (Ebrief)