The Cost of a Bad Hire

WORLD'S EASIEST TO USE VIDEO KIRA TALENT INTERVIEW SCREENING PLATFORM You are one bad hire away from losing $37845 KIRATALENT.COM WHY DO COMPANIES PICK BAD HIRES? 4/10 38% of employers rushed to fill the job 34% of employees just didn't “fit" 21% say insufficient talent intelligence contributed to bad hiring decisions E 11% didn't do reference checks organizations admit to a bad hire SIX TELL-TALE SIGNS OF A BAD HIRE Bad hires manifest themselves in many ways. If a new hire raisesany of these red flags it might be acause for concern. Negative attitude Can't produce quality work Subject to customer complaints Inability to work well with the team Can't meet deadlines Attendance problems BREAKING DOWN THE COSTS OF A BAD HIRE Recruiting costs Training costs Opportunity costs RECRUITING COSTS Job Posting HIRING Posting job openings on websites like LinkedInand Monster cost between Recruiting begins with the the job posting. From there, costs build up quicklyas a sea of applications are filtered and final candidates are thoroughly examined. $300-$550. $550 Interviews Assessment Using Clearfit or Resumator to filter and assessyour applicants costs between $200-$850. Scheduling interviews takes between 2-20 hours of the hiring manager's time, costing the company between $70-$700. $850 $700 Candidate Travel Background Check Employee Referral Programs $2,000 $100 $4,000 up to up to Based on a survey of North American businesses, total recruiting costs for one employee range from: Large (10k+) Enterprise Midsize Company Small Firm $1,999. $3,632 $3,805 %. /employee TRAINING COSTS American companies invest $156 BILLION training their employees. After all that sifting youthink you've found the perfectaddition to the team. Before youputthem to work,you'll have to invest in their training and developmentto bring them fully onboard. 31 is the average time an enterprise invests in training an employee annually. HOURS At $30/hr for the trainer and $22/hr for the employee, the costs for training one employee is between: Large (1ok+) Enterprise Midsize Company Small Firm $825 $1,615 .. $1,102 /employee OPPORTUNITY COSTS You don't know howyou could've missed the signs, but sure enough, you've made a bad hire. The damage is done and it's too late to take back what you've invested-they're all sunk costs now. It's time to evaluate your options, and go back to the drawing board. Derailed team 41% report lost work productivity. Bad hires not only produce sub-par 40% report lost time to recruit and train another worker. results, they can also derail the team. 36% report negative impact on employee morale. 22% report negative impact on client solutions. Legal Costs 9% of enterprises report legal costs associated with bad hires. Unfortunately, an exiting employee requires expansive legal work. $5,000 - $20,000 Productivity Losses Assuming that it takes three months to pinpoint a bad hire for $25/hr-you're throwing away $6,000 Avoid sunk costs Make use of recruiting tools like Kira Talent's video interview screening platform and make sure that not a single bad hire slips through your filter. Kira Talent is a video interview screening platform designed to help small to mid-sized companies and academic institutions save time and money by making recruiting easier. HOW KIRA TALENT WORKS 14 MAY Invite Receive Review Record your own or select from our best-practice video question bank and invite your candidates to respond. Candidates use their webcams to record Review candidate responses video reponses on their own time. No scheduling required. collaboratively with your team quickly and easily. VISIT KIRATALENT.COM OR CONTACT [email protected] TO LEARN MORE © Copyright 2013 Kira Talent. Sources: careerbuilder.com, USCensus, Statistics Canada, US Department of Labor, Monster.ca, Linkedin, Glassdoor, SHRM, ASTD, Drake International.