CFOs say lower staff morale and productivity are the biggest pitfalls of poor hiring decisions.
As expensive as it is to replace a bad hire, the money isn't what concerns employers most. In a Robert Half survey, chief financial officers (CFOs) said the single greatest impact of a poor hiring decision is lower staff morale (41 per cent), followed closely by lost productivity (34 per cent). Monetary costs came in third, garnering 19 per cent of the response.
The survey was developed by Robert Half, the world's first and largest specialised staffing firm, and conducted by an independent research firm. The survey is based on interviews with more than 270 CFOs from a random sample of Canadian companies.
CFOs were asked, "Which one of the following, in your opinion, is the single greatest impact of a bad hiring decision?"
Lower staff morale - 41%
Lost productivity - 34%
Monetary cost - 19%
Other/don't know - 6%
In the current hiring environment of talent shortages, employers may feel pressured to cut corners in order to speed up the hiring process. Although acting with a sense of urgency is important, following a clearly defined hiring process and using the right resources can help prevent unnecessary headaches often associated with rushed decisions. Engaging experts such as human resources professionals and recruitment specialists can help substantiate the process of following through with reference checks and ensuring that candidates not only have the technical expertise needed to fulfill the role, but that they are also a cultural fit for the organisation.
A bad hiring decision can often cause a negative ripple effect through the organisation. Hiring a bad fit or someone who lacks the skills needed to perform well has the potential to leave good employees with the burden of damage control, whether it be extra work or re-doing work that wasn't completed correctly the first time. The added pressure on top performers could put employers at risk of losing them, too.
Greg Scileppi is the president of Robert Half.
Sourced from Robert Half Finance & Accounting.