How to Avoid the Cost of a Bad Hire
A recent Harvard Business Review article tells us that 80% of employee turnover is due to bad hiring decisions. Companies and managers haven’t found the right hiring solutions. It’s costing them big-time.
The Labor Department estimates that it costs one-third of a new hire’s salary to replace him or her. That estimate may well be on the low side. As the Society for Human Resource Management says replacing a bad hire can cost as much as five times his or her salary. In a survey by CareerBuilder, 41% of respondents said the replacement cost for a new hire gone wrong is at least $25k. Meanwhile, 24% of respondents said the cost is at least $50k.
So, are you saying to yourself, “There has to be a better way”?
Well there is, and it’s called temp-to-hire. You’ve undoubtedly used it before. After all, when you last bought a car, didn’t you take it for a test drive?
So why not “test drive” the candidate for that important job you need to fill?
Here is how it works:
- Talk to a human resources expert in the field in which you’re hiring—someone like Vector Talent Resources in the business communications field—and explain to them your exact needs.
- Then get them to search their pool of potential employees who could meet your needs—if they know what they’re doing, they’ll be able to reach out to a number of candidates.
- Interview the offered candidates until you find the one who makes your mind buzz.
- Then arrange to employ this person on a temporary basis—say, 90 days.
- Use the 90 days to find out if you made the right choice—Does your temporary employee measure up to your expectations? Can he or she do the job? Will he or she do the job? And will he or she fit with your culture?
- If the answers are “yes,” then hire the person full time. The right human resources expert will do this for a small transition charge.
- If the person you first chose turns out to be the wrong fit, then go back to your human resources partner and have them refill the position with another potential employee, and the evaluation period starts over. And you will have avoided the wasted recruiting costs of the first candidate, any severance arrangement, the possibility of any legal issues, and all of the other costs stemming from a failed hire of a full-time employee.
Does this program seem like a no-brainer to you?
If it does, then you are in the company of so many others who use this program to avoid the poor batting averages of traditional hiring practices and ward off the enormous costs that accompany them.
For more Information about how Vector Talent Resources can help you, contact our talent agents at email@example.com.