How much do you think it costs a company to hire a person that’s not the right fit for their organization?
There are many different formulas that HR professionals use to calculate the cost of recruiting, hiring, and retaining talent but either way, it all costs money. As quoted by The Undercover Recruiter on average, a management-level employee making $68,000 in annual salary would cost the company more than $800,000 if terminated within 2.5 years of hiring. This, shockingly, does not account for the cost of recruiting and hiring a replacement.
As a staffing agency in Brampton, let us walk you through the associated costs of bad hires.
1. Costs of Conducting Hiring Activities
No HR person would like to spend hours and hours trying to source, interview and onboard new team members only to hand them a letter of termination. Let’s do a quick calculation, to hire a person to let’s assume your HR employee spends a total of 30 hours to hire one candidate and they get paid about $25 / hour.
30 hours x $25 per hour = $750
And this is just a lower estimation of what your costs could look like.
2. Productivity Costs
When it becomes clear the new hire is unable to perform to your business’ standard, managers must spend more time training and retraining the employee, resulting in a loss in productivity and man-hours of both the new employee and the manager. Bad hires also result in poor sales possibly leading to your business not reaching its targets.
3. Recruitment Ad
Though some recruitment websites provide free online listings there are some that you have to pay for. Along with that, you spend time looking through it, go through resumes and sort through it to find ideal candidates.
Some Factors that Make a Bad Hire
• Poor Quality of Work
• Poor Work Attitude
• Not a Team Player
• Poor Attendance at Work
• Skills do not match Job Description
How to Avoid Bad Hires
You can always hope to have the right cards when hiring someone, but let’s be honest- you’re not going to get trump cards every time. Use the following tips to help you find the right candidate:
• Go with your gut feeling or first instinct
• Conduct a thorough reference check
• Set up a trial period
• Establish clear expectations and responsibilities
• Seek additional help from staffing agencies in Brampton
Hire a Staffing Agency in Brampton
With a simple Google search of ‘staffing agencies near me’, you’ll get a variety of options but how do you find the right one for you? Nova Staffing has been recruiting the finest employees for organizations across Brampton for over 20 years. Not everyone has the resources or the time to look for people to help with their business so that’s why working with a staffing agency in Brampton like us can be extremely profitable.