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Almost every day we see companies posting job vacancies on various job portals. The goal, of course, is to get the best candidates who can immediately work and fill vacant positions in the company.
Read About: Coding test: Is It Mandatory For IT Talent Recruitment?
Many companies are urged to immediately find candidates who can fill the vacancies, but unfortunately there are still few who pay attention to the quality of the recruitment they are running. The cost to carry out a one-time recruitment process is very large. If the recruitment ends badly, then the losses are even more.
Yes, recruitment may be one of the right solutions to find new candidates, but it should be realized that this does not guarantee the company will get the best candidates.
Bad hiring can lead a company to hire the wrong candidates for work and this can be very detrimental. As a result, the costs incurred will be even greater than usual.
Whether we realize it or not, there are still very few companies that pay attention to this problem, which is why through this article you will be invited to discuss further about bad hiring costs as well as how to avoid them.
Whether we realize it or not, there are still very few companies that pay attention to this problem, which is why through this article you will be invited to discuss further bad hiring costs as well as how to avoid them.
Want to know more about this information? Don’t forget to read this article to the end
How Much Does It Cost For Bad Hiring?
The exact amount a company will spend on bad hiring will vary widely, and it depends on each company. However, in this article, we will provide an overview of the costs that may arise due to bad hiring.
Based on research conducted by The United States Department of Labor, quoted from Apollo Technical, the cost for bad hiring can reach 30% of the employee’s wages in the first year. For example, if you give an employee a salary of $80,000 then the costs incurred only for recruitment are $24,000.
For some companies, these costs may seem small. But for a small company with a small budget, this cost is very high.
The Impact of Bad Hiring
Many impacts can be felt from bad hiring. Bad hiring will affect many things and of course, this is not a good thing.
Lack of Productivity
The first consequence that a company may experience from bad hiring is a lack of productivity. The new employees you recruit may not be productive enough in carrying out any given task, this is a serious problem because it will greatly impact the performance of the company that has been well built.
Burdening Team
The second consequence that can be felt after choosing the wrong employee can be burdensome for teamwork. Because the new employees you recruit are less productive, unfinished tasks will usually be taken over by other teammates so that the work can be completed according to the deadline. This will certainly be very burdensome for the team that already has their job desk.
If this continues to happen it will greatly affect team relations. Other employees may not like the presence of a new employee on their team, resulting in poor teamwork and disharmony.
Bad Relationship With Client
The third consequence, the result of bad hiring can affect the relationship with the client. This is a nightmare for all companies, but if you choose the wrong employees then this problem may happen.
Yes, if the new employee you choose does not carry out their duties properly, the company may lose a client. Even if later your company provides maximum results, the client will stop working together and switch to another company. In the worst case, they will give a bad review regarding your company’s performance.
Damaged the Company’s Reputation
The fourth consequence, the wrong choice of new employees can damage the image of your company that has been well built. Reputation is very important for the company, with a good reputation the company can gain the trust of many clients or partners. To maintain a good reputation, it will be very difficult to recruit new employees who do not match the company’s values.
Doesn’t Fit with Company Culture
The fifth consequence, the new employee you choose may not match the company culture. Company culture is very important for the organization. Recruiting someone who does not have the same goals and values as the company will destroy the company culture that has been built so far.
Recruitment Costs Become Bigger
The last consequence, after choosing the wrong employee to work, your company will carry out a new recruitment process to get the right candidate to replace his position. This will add a lot of costs after you previously did bad hiring. Yes, you will repeat the same process to get new employees and it will certainly cost money.
How to Avoid Bad Hiring
After understanding the consequences of bad hiring, the next thing to do is to overcome it. You surely don’t want this loses to continue in the future.
There are some of the best ways to deal with bad hiring:
- Adjust your recruitment process to fit your company culture
- Develop better strategy on your recruitment process
- Make a clear job description for your job vacancies
- Do a skill-test to find the best candidate
- Use the right recruitment tools to find the best candidates
Finding the best candidates for companies is indeed difficult, all companies must have chosen the wrong candidate to work. However, this is enough to be used as a lesson, after reading this article, start to evaluate the recruitment process that the company runs.
That’s why Algobash is here to solve your problem. Through Algobash, companies no longer need to worry about choosing the wrong candidate especially IT talents. Algobash provide way more budget-friendly coding test solution compares to your expenses on bad hiring.