Understanding the True Cost of a Bad Hire

October 23rd, 2015

When your company is understaffed and your current team is seriously overworked, it’s only natural to want to hire someone, anyone to fill your open positions immediately. However, hiring decisions made in haste rarely have a positive outcome. In fact, it can have a detrimental impact on your entire organization.

In a recent CareerBuilder survey, 41% of companies said a bad hire has cost them at least $25,000 in the last year. If you think that’s bad, 25% of those surveyed revealed that a bad hire has actually cost them at least $50,000.

Hidden Costs of a Bad Hire

Monetary costs are easy to add up, but indirect expenses can actually be even more detrimental to your bottom line. Bad hires can result in lost worker productivity, lost time needed to recruit and train another employee, costly expenses to recruit and train another new hire, negative employee morale and they can have an adverse impact on client solutions.

The survey revealed that companies hire bad employees for a number of reasons, including a need to fill the position quickly (38%), the person just not working out (34%), the company’s failure to adequately test or research the person’s skills (21%) and not performing adequate reference checks (11%).

It can be difficult to avoid making bad hiring decisions if you don’t know which red flags to look for in candidates. Employers surveyed noted their bad hires displayed these characteristics:

  • Failure to produce high-quality work — 63%
  • Failure to work well with others — 63%
  • Negative attitudes — 62%
  • Immediate issues with attendance — 56%
  • Employee caused customer complaints — 49%
  • Failure to meet deadlines — 48%

 

Increase Your Chances of a Great Hire

Hiring decisions are always somewhat of a gamble, but you can greatly increase your chances of success by following these three rules:

  1. Learn How to Interview Right: All job interview questions are not equally effective. It’s important to ask open-ended questions, so you can learn more about the candidate and their fit for your team. Get below the surface to gauge the person’s true colors.
  2. Always Conduct Reference Checks: Calling a candidate’s references won’t take a lot of time, but it can save you from making a huge hiring mistake. References are people who have worked with the candidate in the past and can speak to their skills, personality and other key attributes. Don’t miss out on this valuable learning opportunity.
  3. Make New Hires Feel Welcome: The first day of work is always nerve-wracking, so make your new team members feel appreciated from the moment they walk through the door. Have their workspace prepared, plan a group lunch, introduce them to their new colleagues and get them started in a comprehensive training program.

Make bad hires a thing of the past by partnering with Accountingpros Recruiting + Staffing today! Our experienced recruiters are committed to finding the right fit for your team.

Hiring for Long Term Employees | Finding Loyal Employees

February 27th, 2015

By now you’ve already realized that having an abundance of long-term, loyal employees is the key to the lasting success of your organization. However, it can be difficult to spot these people during the interview process. Many fast-talking candidates will impress you, but only a very have what it takes to stay with you for years to come.

3 Tips for Finding Loyal Employees

Trying to fill an open position with a candidate who’s here to stay? Use the following three techniques to find someone who wants to make your company part of their long-term career plan:

  1. Focus on Personality: It’s easy to get overexcited about a candidate with all the right skills and excellent credentials, but being good on paper certainly doesn’t mean they’re right for the job. Remember, you have to work with the person everyday, so choose someone you genuinely enjoy being around. Skills can be learned but personality traits cannot. If you sense even the slightest bit of arrogance or dishonesty, move on to the next candidate.
  2. Find a Great Cultural Fit: Your company culture immensely impacts your employees’ job satisfaction. Find out as much as you can about the company culture at the candidate’s current or previous employer and what they liked and disliked about it. Use this information to determine whether or not they would fit in at your organization. Involve as many of your team members in the interview process as possible to make a well-informed decision.
  3. Ask for Employee Referrals: Your employees have a network of talented connections, so ask them to refer candidates they think would be a great addition to the team. Loyal workers have a vested interest in the organization and won’t recommend anyone they don’t truly believe will excel. This is an amazing opportunity to recruit like-minded people who want to be part of your company for the long-term.

Looking to hire top accounting talent that wants to put down roots at your company? Contact Accountingpros Recruiting + Staffing. Our team is committed to helping you fill your open positions with the best and brightest candidates in the Seattle area!