Anybody who has had the power to say yes or no to a job applicant knows that no matter how carefully a hiring decision is made, it is still to a certain extent a crapshoot. Here is a study that shows just what is at risk.
The report comes from staffing firm Robert Half. Surprisingly, loss of income isn’t even one of the top two negative results.
According to the survey, which was taken with a group of CFOs numbering more than 2,100, the #1 adverse result of a bad hire is lower staff morale, cited by 39%. Lost productivity is cited by 34%, and monetary cost by 25%. The other 2% had no opinion.
“There are a number of reasons someone may not be a good match for a job — he or she may lack the requisite skills or be a poor personality fit, for example,” said Paul McDonald, senior executive director for Robert Half. “Interviews and reference checks are designed to ensure a successful hire, but these methods are not fail-safe, particularly if employers are not thorough in their efforts. This is where professional recruiters can add value.”
McDonald added that no matter the root cause of a bad hiring decision, it can spread negativity rapidly. “A poor hire can cause friction as other employees are left to take on extra work and fix projects that weren’t done right the first time. Bad hiring decisions also can cause staff to question management’s judgment and even lose faith in company leaders.”