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  • Writer's pictureMark Peznowski

The Cost of a Bad Hire

Updated: Apr 14, 2021

Let's face it, not all hires work out as planned. At Pezian Search Group we mitigate this concern by offering a guarantee period for our candidates because we know that true fit within a team isn't fully understood until that person becomes integrated into your business.

While a bad hire is not the ideal situation for any employer, the ripple effect that it can create goes far beyond just finding a replacement for that particular role. Here are some other effects that can occur:

  1. Team Impact: As a new employee is integrated into the team, a shift in duties may occur with your existing team members. This could create additional work for those employees that are now picking up extra duties that may not necessarily be in their sweet spot. Team chemistry could suffer as a result, and could also cause very capable employees to look elsewhere for work.

  2. Reputation with Customers: For those hires that interact directly with Clients, these employees are the face of your brand. If they are unable to represent the company at the level that is needed for growth and success then it could lead to the development of a poor reputation and at worst, lost business that can be difficult to regain.

  3. Financial Impact: There are obvious financial consequences to a bad hire, but these extend above and beyond just the salary that this person was making. The cost to hire a person can be substantial, including background, drug and credit checks, as well as training and equipment that the person may be issued as a part of their employment. Many studies have shown that these costs can add up to 30-40% of the persons estimated first year salary.

  4. Time Impact: Deadlines are inevitable. If someone on a team is not able to handle their share of the workload then this can cause delays in production, delays in delivering to Clients, and as a result, delays in being able to move to the next project. This domino effect can impact every area of the business from morale, to revenue, to reputation.

In sum, there are many factors to consider when adding a person to your team. We tailor our approach to our Clients timeline, expectation and wishlist while also offering the assurance that in the event that things do not go as planned we will work diligently to find that perfect fit.

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