The Cost of a Bad Hire

Interviews are the most anticipated (and dreaded, not to mention!) process each and everyone has to go through before the hiring. Before you can get that one perfect developer for your program, one perfect financial expert for your company or one perfect manager to take your delegated tasks to their fruition, you need to sit down with your team, come up with plausible hit-the-nail-in-the-head kind of correct questions, and list down what you want. Most of the time, we go by standardized formats and make a hiring decision (Oops!) and this is what happens.

After a brainstorming session with your HR team, you start to look for an appropriate candidate. Now you are a company that has been doing fairly good! Things seem to be going your way. You are putting together an engineering team, that understands you, gives the output that you need and you feel it in your bones that you could shake up the market very soon. Selecting that perfect hire for your team, who not only takes your ideas to the next level, but also makes every penny that you have spent is worth it.

But one slip, one wrong hire, and that rosy picture you have been painting for your company might just get thrown out of the window. The cost of a bad hire is too much to ignore. Here’s a pictorial representation of what the true costs that you may have to bear for the one move.

These numbers are the costs you would undertake for every bad hire. And if you are a startup, this one thing would push you back to square one with considerable losses.

A misjudged or misplaced hire could affect not only the position that he has been hired for, but also each and every person in the company will be terribly slowed down. And that is just one of the many things no one would want for their dream venture. A wrongly placed developer could bring the whole spirit of your company down.

The right QUESTION to ask here is WHY would you end up hiring a bad candidate? Here are some possible reasons:

The risk is too high to keep repeating the same mistake over and over again!

The following check list may help you gauge and put an end to the potential loss:

  • Conduct great interviews that filter the wheat from the chaff - How? By really assessing what you want for the position that you are hiring for - focus on the long term goals.

  • Do a proper reference check. Since recruiting someone on the basis of fancy fluff could beat you to pulp down the line.

  • Ask the right questions, nudge the potential hire to reveal his passion by letting him demonstrate his skills.

Because if these basic checks are not in place, there is a huge chance that the decision you make with regards to the hire, you might regret it. After all, it's not going to be everyday that you conduct an interview for a position and get desired results immediately.

Therefore, why not take steps to ensure that the chances of mistakes are eliminated right at the beginning of the interview process.

Stay tuned to know more!