About this Webinar: Avoiding the Cost of a Bad Hire
Losing an employee is an expensive transaction. There are the sunk costs of the hiring process, such as on-boarding, employee wages and payroll taxes. But there are also the intangible losses, like the departure of a punctual, positive employee who helped anchor a team.
In this webinar, you'll learn:
- Intangible effects talent loss has on a team and company
- Key strategies to minimize costly attrition
- How to refine your hiring process
Watch the Recording Now
Knowledge Bite
“Each firm should understand that losing an employee is not just, ‘We lost $10,000 or $20,000 or $30,000.’ It’s way more than that when you add in the intangible costs of their productivity and their impact on a team. It’s better to spend a long and protracted time hiring than to incur those costs regularly.” – Manish Mohan, Chief Global Talent Officer at Kforce
Knowledge Points
1. Employee turnover is more costly than employers may realize.
It could take as long as six to nine months to identify a bad hire and find a replacement, all while incurring tangible costs: employee wages, payroll taxes, recruitment costs, onboarding resources and more.
“You add all this together, and it’s actually astounding,” Kforce Chief Global Talent Officer Manish Mohan said. “It could be as high as 1.5 to 2 times an employee’s wage.
2. If a company rushes the hiring process and makes a bad hire, they face additional intangible costs.
A company has to consider the intangible costs a bad hire yields. If a person isn’t a good fit, they could create extra work for their teammates or impact customer relationships.
“A bad hire affects the performance and morale of their colleagues, and, at the same time, they’re a distraction and a burden to the people who manage them,” said Saleem Khaja, co-founder and Chief Operating Officer at WorkLLama. “Eventually, it will get to a point where you have to part ways and replace them, and then there are costs that come with that.”
3. By refining their hiring process, managers can avoid the costly mistake of a bad hire.
Khaja and Mohan suggested some ways hiring managers can zero in on a good candidate:
- Dig into the candidate’s work history
- Look for examples of passion and drive
- Lean on referrals and consider incentivizing them
- Partner with organizations who have a good understanding of your company culture
Scout out potential candidates before you have an opening
“If you meet a good person in life, on social media or out at an event, start hiring them now,” Mohan said. “It takes awhile to get to know that person and build a relationship. But once that job opening appears, you’re not scrambling and in a rush to hire someone who might turn out to be a bad fit. This is a person that you’ve already gotten to know and can feel good that they’re the right fit.”
Featured Expert
Manish Mohan serves as Kforce's Chief Global Talent Solutions Officer. He has more than 25 years of experience in strategy, sales and operations at Kforce, PricewaterhouseCoopers and Bank of America. Since joining Kforce in 2000, he has led many initiatives including the inception of the Global Talent Solutions team in 2009. While at Kforce, his team has been recognized multiple times with Team of the Year awards. A graduate of BITS Pilani with Bachelor's and Master’s degrees in engineering, he received an MBA from the Kellogg School of Management at Northwestern University. He is also an adjunct faculty at University of South Florida’s MUMA School of Business and teaches people analytics to the class of graduating seniors.
Featured Expert
Saleem Khaja is a technology evangelist known for developing, implementing, and managing innovative products and services in staffing and recruiting; wireless telecom; warehousing / logistics; and retail industries. He has more than 22 years of experience in business development, product strategy and operations. He earned his micro-masters in digital product management from Boston University, his MBA from Iowa State University and a Bachelor’s degree in Computer Science from National Institute of Technology, India.
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