Most employers impacted by bad hires
By Amanda McGrory-Dixon
Most employers have made bad hires, which have led to major negative impacts for those companies, according to a study from CareerBuilder.
Some of these negative consequences are losses in revenue, productivity declines, and poor employee morale and client relations, the survey found. Overall, 66 percent of U.S. respondents say a bad hire has cost them. In fact, 27 percent of U.S. respondents say one bad hire has cost at least $50,000.
"Making a wrong decision regarding a hire can have several adverse consequences across an organization," Matt Ferguson, CEO of CareerBuilder, said in a statement.
"When you add up missed sales opportunities, strained client and employee relations, potential legal issues, and resources to hire and train candidates, the cost can be considerable. Employers are taking longer to extend offers post-recession as they assess whether a candidate really is the best fit for the job and their company culture."
The survey, which interviewed hiring managers and human resources professionals from countries with the top 10 biggest gross domestic products, found that the countries with respondents most impacted by bad hires are Russia at 88 percent, Brazil at 87 percent, China at 87 percent and India at 84 percent.
Meanwhile, respondents from countries least affected by bad hires are France at 53 percent, Germany at 58 percent and Japan at 59 percent.
Regarding the impacts, respondents in Brazil, Russia, India and China are most likely to experience drops in productivity and revenue. However, U.S. respondents tend to see a larger impact on morale and recruiting and training costs.
Originally published on BenefitsPro.com