5 Hidden Costs Incurring to you Because of Mis-Hires
“If you think it’s expensive to hire a Professional, Just wait until you hire an Amateur.” A mis-hire not only pose a financial burden on the company that can last for months, but there are other subtle costs associated with mis-hiring that many HR professional ignore. These unseen costs can impact your business for years, long after the financial impact is absorbed. These 5 hidden costs can only be ignored by hiring right kind of candidates either inhouse or by hiring a Top Executive Search Agency. Hidden Cost 1 : Morale of the employees suffer One rotten apple can spoil the others in the bunch as well. Even though this could not be entirely true in an organisation but a mis-hire can have a significant negative impact on the
morale of good employees who eventually may leave the company thereby lowering the morale even further. The overall productivity can be hit & extra cost may be infused in terms of training & discipline. Hidden Cost 2 : A Poor Customer Experience The mis-hire can come in contact with clients, customers, vendors etc while doing his job. These people can have a bad experience with an under-performer & may chuck their relations with the company altogether. Thus a mis-hire can damage the company in an irreparable way by hitting the sources of revenues of the company. Hidden Cost 3 : Work Productivity suffers The mis-hire would impact the work productivity of an entire team in terms of quality, creativity & finesse. Working in team is very crucial as one’s work affect the efficiency of the entire team and hence can lead to bad quality products further damaging the business.
Hidden Cost 4 : Micromanagement Culture The effort a manager has to put in getting work done from a misfit is much more than normal. It forces them to micromanage & sometimes even do the work themselves as they are answerable to the clients & the higher authorities. The point here is, it is not just a single mishire, there can be multiple of them & in that case, the sole work of a manager is lost & he is left with no choice but to work at micro level. Hidden Cost 5 : Rushing to the next Recruitment Drive So now, you are rid of the mis-hire, but you need resources to complete your work. For that, you will rush to a fresh recruiting process & without giving enough time to it, end up hiring another mis-hire thus getting stuck into a vicious circle. Recruitment is not an easy task. Special time & effort needs to be invested in hiring the perfect individual which is correct for your company.