The financial costs can be huge, but the soft costs are significant as well.
Would you believe that the true cost of a bad hire is $840,000?
And while the cost is certainly something organizations should be worried about, TLNT.com’s Lance Haun believes there’s two other things to blame for the issue of bad hires: inaction and lack of will to change.
“The inaction part is the easy one. If you let a bad hire sit on your payroll for 30 months, that costs real money — money your executives should see,” he notes. “If you can make a quicker decision once you really know someone is a bad hire, that will save not only that real money but also all of those soft costs that are harder to calculate, like disruption and opportunity cost.”
How can you best fix the situation? He suggests firing the bad hire as soon as you know they’re not working out (and giving him or her a generous severance package). He also says to “hire better, as often as you can, no matter the cost.”
Check out this infographic by Resoomay to see what a bad hire will truly cost your company.
All the success!
PM in the AM
No comments:
Post a Comment