Anyone tasked with making hiring decisions for a company knows that it’s a tedious and often difficult process. Whenever a bad decision is made in the hiring process, it’s not only a challenge and time-consuming issue, but it quickly becomes an expensive mistake.
Knowing that one decision can cost the company a lot of money only adds pressure to the process. But how much does a bad hire actually cost? In a 2014 study by Robert Half International, 34% of CFOs agreed that bad hires cost them productivity, and managers spend 17% of their time (almost 1 day per week) supervising poorly performing employees. And the U.S. Department of Labor says that the cost of a bad hire can reach up to 30% of the employee’s first-year earnings. But how much is a bad hire really costing your company?
