StartArticlesHow much does a bad hire cost?

How much does a bad hire cost?

Hiring the right professional is often hard work. After all, beyond analyzing candidates' technical knowledge and behavioral profile, there are many other factors that weigh just as much in this choice – which, when not properly understood and analyzed, can lead to a series of damages and high costs caused by a wrong hire.

A good recruitment and selection process is usually based on a good balance between technical knowledge, behavioral profile, and cultural fit. This tripod is what supports the success of this choice, while neglect or lack of any of these pillars can destabilize and compromise the accuracy of bringing a new talent into the business.

Too much attention to the first two items is usually one of the main mistakes made in this regard. After all, beyond having technical expertise in the field, a good hiring must consider the candidate's synergy with the company's culture, mission, and values. Otherwise, thegapof these aspects between the parties will certainly generate frustration on all sides and, inevitably, lead to the dismissal of this professional shortly.

Other common mistakes that can increase the risk of hiring the wrong person include not checking professional references, which is essential to ensure that everything written on the resume is reliable and compatible with your efforts in the job; and the lack of involvement of other members of the company in this process, since the contribution of key positions such as leadership, HR and other members who will work together with the newcomer brings a breadth of views on each candidate and different perceptions that favor a better understanding and decision about who to hire.

The rush to complete this process also tends to hinder a good choice, with a high chance that those responsible for this process end up “forcing” the alignment between the company’s expectations and the candidates and, in this way, preventing them from taking due care and patience before making the decision.

Financially, according to a study published in SimplyBenefits, replacing an employee can cost between 30% and 400% of that position's annual salary. However, it is important to emphasize that these damages are not limited to the financial aspect, since a poor hiring also results in losses of energy and time invested by those responsible for this process in this adaptation curve, which consequently worsens frustration and discouragement in restarting the selection process.

There will be no shortage of signs indicating a possible wrong hiring. After all, besides this lack of fit and success in their adaptation, managers may notice an inability of this professional to achieve the expected objectives in their roles and deliver the appropriate results, along with a lack of credibility and authority gained in their position, and also an excess of energy in an attempt to allocate themselves within the business routine, in a process that should occur more naturally and effectively.

Even though a mistaken hiring decision can be “reversed” with a consequent dismissal, the ideal is that this risk is reduced as much as possible through a set of attitudes and care that help those responsible for this process to be as assertive as possible in this choice.

One of the most important points to be prioritized right from the beginning is to have the utmost awareness of the company's values and the synergy – or lack thereof – with the candidates' values. This is not only conveyed through what is formalized in the corporate institutional framework but also reflected in the daily lives of all members working at the site.

This clarity needs to align with what is expected of this talent in their roles and whether they are indeed capable of meeting these goals. This alignment with the deliverables, results, and metrics will provide greater confidence in determining who will be able to meet expectations. Another point that can provide greater security in hiring is the application of behavioral profile tests and/or assessments that map and offer a deeper insight into each candidate.

On this journey, having a specialized executive recruitment consultancy is a wise decision. In the end, it will feature experienced headhunters and specialists in their respective fields of knowledge who will lead the recruitment process, ensuring that the previously mentioned pillars (technical, behavioral, and cultural fit) are as aligned as possible, so that the company and the professional executive have the best possible fit.

These professionals will conduct an in-depth analysis of the reality and challenges of the business, and how the best solutions aligned with their objectives can be translated into the ideal candidate profile. Yes, always including extensive reference checks and comprehensive interviews that provide the greatest possible clarity regarding this compatibility.

Making a wrong hiring brings a series of damages to all involved. Although it is a situation that any company may be susceptible to experiencing, the precautions mentioned above are extremely helpful in minimizing these chances, contributing to ensuring that those responsible for the selection process have maximum confidence in whom they choose and how to guide their adaptation so that everyone is satisfied and, together, join efforts in favor of growth and corporate prominence.

Jordan Rischter
Jordan Rischter
Jordano Rischter is a headhunter and partner at Wide Works, an executive recruitment boutique focused on senior and mid-management positions.
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