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Hire Remorse – The Costs of a Bad Hire

April 06, 2017

Making the right hiring decision is not always easy, even for veteran hiring managers, and there is a lot at stake for organizations. The more systematic and objective your recruitment and selection processes are, the more likely you are to make a good hiring decision.

The organizational burden of making a bad hire can be significant, resulting in wasted company resources. A recent study of Canadian CFOs identified that even greater than the monetary expense (19%), poor hiring choices have the biggest impact on lowering employee morale (41%), and lost productivity (34%) during the stages of hiring, training, and getting the new employee fully integrated into the workplace.

When a hiring mistake happens, the first step is to acknowledge the situation and then deal with it promptly and appropriately. Begin by talking to the employee and making them aware of the issue, whether it is due to their performance or fit within the organizational culture. Next, establish reasonable and appropriate expectations and timeframes for improvement. If the employee is still unable to meet expectations, then it may be reasonable to terminate the employment contract while still within the probationary period.

Download our New Hire Performance Plan for more tips on developing recruitment, selection, coaching, and other performance management strategies that can help your organization avoid the costly pitfalls of making a bad hire.

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Source: Robert Half (https://www.roberthalf.ca/en/employers/hiring-advice/employee-recruitment/hiring-strategy-resources-to-help-you-find-the-right-one/cost-of-a-bad-hire)

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