As the saying goes, “One bad fish, spoils the whole pond”, one bad hire can financially cost a company a huge amount. And not just money, which of course is a great loss, but a bad hire is also a loss of time, resources, productivity and motivation. In the current booming economy, companies are especially struggling to find and retain quality talent.

• The intangible cost:
  Since the financial loss is tangible, the intangible costs of a bad hire are the bigger cause for concern to a company’s management. This is because disengagement is contagious. Due to one disengaged employee, the good employees burn out early trying to make up for the shortcomings. The result? More disengaged employees. This can lead to a huge loss in customers due to not meeting deadlines, delivering lower quality product or service or both. Not only this, since the poor performers lower the bar for other employees, the company has to put in resources to reset the culture once the bad hire leaves the organisation.
• The importance of references:
  References are invaluable resources which should be put to the right use when hiring a new employee. With the advanced technology and access to information, a lot of fraudulent cases like faking work experience in resumes, giving false information about oneself, etc have become quite common. Without background checks and referencing from previous employers, these generally go unnoticed. It does not only cost the company valuable resources in the process of hiring, but might also prove to be disastrous in case the person is hired at a key position.

  Statistically, almost 43% of bad hires are a result of a rushed hiring process. According to SHRM (Society of Human Resource Management), the cost of making a bad hire is approximately 5 times the employee’s annual salary. While there is no sure shot way of ensuring that the occurrence of bad hires is completely eliminated, there are certain methods employers can use to make their hiring process more fruitful. Therefore, there is need for a flexible and tailored method for screening of candidates according to the job position offered.

  At Employee Crossings, we offer comprehensive HR solutions to companies so that the crossover of employees from one company to another is transparent and fair. Our services include a complete background check, from previous employment to education and identity checks. This provides authenticity to the candidate being considered suitable for a job role and also brings transparency to the process, thus preventing the ifs and buts of the hiring system. It is therefore necessary to choose wisely and put in the right resources while hiring an employee rather than replacing them later.

  Still wondering how much would it cost you if you hire one wrong candidate? It’s estimated to be a whopping sum of INR 20,00,000!