When a candidate doesn’t fit the role’s requirements, the implications of a bad hire can be challenging to quantify. However, the impact on productivity, costs, morale, and company culture should be considered. Here are some areas that may be affected:
- Decreased Productivity: A bad hire may struggle to perform their duties effectively, affecting their productivity and potentially impacting their colleagues or team.
- Increased Costs: A bad hire can lead to increased costs, including recruitment expenses, additional training, and potential turnover and replacement costs.
- Lower Morale: Poor performance or negative behaviour by a bad hire can decrease team morale, job satisfaction, and collaboration.
- Damage to Customer Relationships: In client-facing roles, a bad hire’s poor performance can damage customer relationships and the company’s reputation.
- Increased Employee Turnover: A bad hire can negatively impact team dynamics and increase employee turnover.
- Time and Resource Drain: Addressing performance issues and managing the termination and replacement process consumes valuable time and resources.
- Missed Opportunities: A bad hire may cause missed business opportunities, delayed projects, or lost market advantages.
- Damage to Company Culture: A bad hire can negatively impact the company culture, eroding trust and shared values.
The overall financial impact of a bad hire in South Africa may vary, depending on the specifics of the role. The figures below provide a rough estimate of the cost per level.
Administrative Roles: R 200,000 to R 500,000
Specialist Roles: R 400,000 to R 1,400,000
Middle Managers: R 750,000 to R 3,000,000
Executives: R 2,500,000 to R 15,000,000
One of the most effective ways of reducing this risk is the implementation of psychometric assessments. They provide objective data, predict job performance, promote fairness, reduce turnover, and improve job fit.
We conduct continuous surveys of line managers, with recommended candidates scoring around 75% and those with caution scoring approximately 68%. We are confident that we can significantly reduce your organization’s overall risk when hiring new staff.
Contact us today to discuss how we can assist you.
011 483 0006 or firstname.lastname@example.org