The real cost of a bad hire

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Let's be honest - it's tough to recruit a good employee. At times, no matter how established the recruitment process, hiring mistakes are made.

According to new research from Robert Half, these poor hiring decisions can cost more than you think.

The research revealed 91% of CFOs felt poor hiring decision greatly or somewhat affected team morale.

At the same time, employees who can't keep up with work demands took a heavier toll on a business than some may think.

On average CFOs spent 26% of their working hours - over 10 hours out of a 40-hour workweek - coaching underperforming employees.

Paul McDonald, senior executive director for Robert Half, said: "A bad hire is tremendously expensive for a company. The time and money managers spend on recruitment and training is lost, and they also have to fix underperformers' mistakes and deal with their effects on staff morale and productivity.

"A bad hire signals that your hiring process may be flawed. It could be that you are not putting sufficient weight on soft skills or are overemphasising qualities that aren't crucial to the role."

In line with that, Robert Half shared four hiring best practices recruiters can follow to avoid poor hiring decisions.

1. Use a multipronged approach

Instead of opening positions on job boards and waiting to be flooded with applications, maximise your chances of hiring a top performer by using multiple strategies:

• Ask for employee referrals
• Tap your network
• Work with a recruiter

2. Hire for fit

Ensure new hires have both the technical skills to do the job well, but don't forget to assess their cultural fit with your team and corporate culture.

3. Offer above-average compensation

Job seekers with stellar skills know what they're worth, so pay is not the place to skimp. Consult various salary guides for insights on starting salaries, hiring trends, benefits and perks.

4. Don't skip the reference check

The reference check is still one of the best ways to ensure potential employees are who they say they are, especially since resume lies are on the rise.

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