Hiring the wrong employee can incur a tremendous cost on the employer. Not only training does cost money, but a poor fit may also reduce productivity and lower employee morale, among other hits to the bottom line.
The price tag for a poor fit is linked to the cost of employee turnover, which is between 16 and 200 percent of a person’s exiting salary, depending upon the strategic significance of an employee, their position their level within the organization, and the high-demand skills they may have.
A poor fit results in many costs to an employer. Here are just a few of the common costs associated with hiring the wrong employee:
- Salary and other compensation-expenses related to the departing employee, such as severance pay
- Declining productivity prior to the employee’s departure
- Job advertising costs, seeking a replacement worker
- Time costs associated with interviewing candidates
- New candidate assessments
- Reduced productivity in the position during on-boarding, orientation and training of the new recruit