Bad Hire: Impacts To Your Business And How to Avoid

  | 4 min read
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The hiring process can be expensive and time-consuming. From advertising the position, sorting out CVs, interviewing, on boarding, training, and ongoing development of the hired candidate. But the cost of hiring can even be higher when you get a bad hire. They can have a significant financial impact on your organization if not endangering the future of the business at large. 

It is important to spot bad hires in the early stage of your hiring process. Here are some of the signs a candidate might develop.

  • A Bad Attitude From The Beginning
  • Lack of Skills You Expected
  • Arrogant Attitude
  • Repeat the Same Mistakes over and over
  • Being Late or Taking A Lot of Time in One Task
  • Not Delivering at All

Impacts Of Bad Hire To Your Business

1. Bad Hire Can Lead to Decreased Productivity 

bad hire candidate assessment tool brightermonday

When you hire a candidate that cannot do their job effectively, you are impacting the whole team. In the project works, other team members will have to step in and work harder so that they can meet the target and deadlines on the whole project. This can drive good team players away. When the other team members are asked to do more to cover for a struggling colleague for a long period of time, it can cause conflict among them.

2. Bad Hire Can Damage the Customer Experience

You may have worked hard to spread awareness and attract customers to your business but one bad hire can chase them away. When your customers face a negative employee, they can turn your business into an online reputation nightmare and negative feedback to their fellow colleagues. They can easily associate the kind of bad customer service they experience with the quality of the product or services your business is offering and decide to turn their eyes to your competitor. 

3. Bad Hire Can Have Financial Impact On the Organisation

bad hire candidate assessment tool brightermonday

Money is an unavoidable impact of the bad hire to your organization. According to research, the cost of a bad hire can reach at least 30% of the position’s annual salary. This can be a lot of money for small businesses and companies that hire more often. A bad hire can cost a business three times more due to money wasted on:

  • Total compensation.
  • Training, 
  • Lost productivity
  • Cost of maintaining employees.
  • Disruption costs.
  • Failures, errors and missed business opportunities

4. Bad Hire Can Undermines Company Culture

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There is a Tanzanian saying that when one fish is rot, it will rot all the others in the basket. This means that one person with a bad habit can destroy the behavior of many good people in a group. This is a true saying in a company.  Hiring someone who has no dedication, skills or work ethic means the whole team will suffer from the behavior and it can breed hatred, difficulty within the group projects and might damage employee relationships. A bad hire can lead to the fall of spirit and hard work to the whole company. 

Hire the Right Person from the Beginning

It’s crucial for the organization to take all reasonable steps to avoid making hiring mistakes from the beginning. BrighterMonday has introduced a Skills Assessment Tool which is designed to test job seekers who apply for your advertised position. These tests will test for core competencies and hard skills required. This will help you reduce the risks of bringing on board someone who is not qualified enough to work for your organization, hence reducing the effect of a bad hire we saw above. Request a call today to learn more about this product

Watch below the reasons why you need Skills Assessments Tool from BrighterMonday 

Mustapha Mosha
Mustapha Ally is a Community Marketing Manager at Zoom Tanzania and BrighterMonday Tanzania. He loves digital marketing social media