Morgan Fraser Group Limited

How can a bad hire negatively impact your business?

For many businesses, employee retention is an ongoing issue. On top of this, almost 50% of employees in the UK fear that they won’t be able to find the right talent to fulfil their roles. With such desperation to fill needed roles, it can be tempting to hire based on urgency as opposed to waiting to find the ideal candidate. Bad hires are therefore an ongoing problem in the UK.

The definition of a bad hire is hiring an employee who leaves the business within the first year of employment due to not having the skills to fulfil the role, not fitting into the team or underperforming in the role.

Research suggests that 85% of hiring managers admit to making a bad hire at some point for the business. This needs to change because making a bad hire can negatively impact the business in many ways.

What are the consequences of a bad hire?

What makes a bad hire so expensive is the need to re-recruit to replace them. Job advertisements, scanning of CVs and interviewing cost precious time as well as money. In addition, once a new hire joins the company it will cost to train them too.

On top of time and money being wasted on the new recruitment process being put in place, a bad hire can also impact your business negatively on an emotional level. Your team could be left feeling less productive, burnt out and on low morale. This could in return lead to your employees leaving the business as well, having a domino effect.

It should also be noted that your business reputation could be impacted negatively due to customers or clients noticing that you are failing to retain employees.

How to prevent making a bad hire?

Whilst sometimes bad hires can be unavoidable due to individual circumstances, there are methods which can be put in place which can assist in retaining employees for longer. Companies could begin by implementing a flexible work schedule as well as an inclusive workforce to provide a better work-life balance for their employees as well as a healthy working environment.

An extremely common reason that employees leave businesses is due to low pay and non-flexible working conditions, which is why it is so important to be flexible with your workers.

Another way to retain your talent is to offer career progression opportunities, this will motivate your employees to stay within the business because they will feel a better sense of belonging and productivity, to have a goal to be working towards to progress their career, rather than feeling stagnant in their role. Studies have found that nearly 50% of employees expressed that limited opportunities to learn new skills within the company were the main reason why they were seeking a new role. Have you considered investing in a recruitment agency to assist with your hiring strategy? We can provide you with the resources you need to avoid making those costly bad hires.

Morgan Fraser is the smart partner of choice to deliver on your talent acquisition needs to help you grow. With over 40 years’ experience in this sector, our team of recruiters are experts in their fields, using their vast knowledge, far reaching networks and insights to deliver quality people for the right roles. Interested in working with us? Get in touch today!

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