How having an effective early career talent strategy can help reduce the risk of a bad hire

How having an effective early career talent strategy can help reduce the risk of a bad hire

The cost of a bad hire can be detrimental to organisations, both financially and culturally. Hiring the wrong candidate can result in lost productivity, increased turnover, a negative impact on team morale, and potential damage to the company's reputation.

In this article, we will delve into the various costs associated with making a bad hire and why organisations have bad hires. We will also provide insights and tips on how organisations can prevent bad hires.

What is the cost of a bad hire?

Bad hires cost a lot of money, but it could be more than just money. A bad hire can result in the following:

• Lower productivity level

A bad hire will reduce productivity levels in your company. When a candidate isn't fit for the role, they'll find it difficult to meet deliverables. Often, their works will require reviews, development, and feedback.

In addition, other employees will have to bear the burden of completing the work, which may not work out well if they, in turn, can't handle it. A bad hire affects the overall productivity and capacity of the team, and you must avoid it.

• Lower organisational morale

Another cost of a bad hire is lower organisational morale. When an unfit candidate assumes a role, they struggle to function and meet deliverables. As a result, other employees have to take on unfinished tasks and projects.

Consequently, this puts tension and strain on the employees, which affects their attitude towards work. When they have to work harder and longer hours with no extra compensation, they feel unmotivated to work because it's different from what they're hired to do. All these affect job satisfaction and employee engagement.

• High turnover cost

The turnover cost of a bad hire can amount to up to 40% of the employee's salary, covering lost hours of training, productivity, and more. You lose money when you hire an unqualified or bad candidate. While you may think hiring unqualified people will save you money, you couldn't be more wrong.

What contributes to a poor hiring process?

Hiring decisions are important. However, a company might end up with a bad hire due to inadequacies in the hiring process. A bad hire can occur due to the following:

• Relying on untrained interviewers

Companies often hire bad candidates when untrained interviewers examine talents. Interviewers without proper training may let their bias get in the way. Also, they may not execute an effective selection process. Consequently, the company ends up hiring an incompetent individual.

• Absence of specifics

Companies tend to hire bad candidates when there are no specifics. This can happen when you send out job posts without proper descriptions stemming from not highlighting desired candidates, skills, experience, attitude, and character traits. Since there is no basis for scrutinising candidates, choosing one that matches your goal is hard.

• Skipping reference checks

Candidates tend to exaggerate their skills and competencies on their resumes.Research revealed that 66% of recruiters agree that talents exaggerate the skills on their resumes. Mainly relying on the descriptions on the resumes without carrying out reference checks can put your company at risk of a bad hire.

How can an optimised early career talent strategy help minimise the risks of a bad hire?

With the average cost per hire in the UK being £3,000 and the average cost of onboarding being roughly £5,000, companies can't risk making those losses. Therefore, you should prevent a bad hire by all means.

Here are ways to prevent a bad hire:

• Talent attraction

One effective way to prevent a bad hire is through talent attraction. These are the steps and strategies put in place to attract talent. With the right strategy in place, talents will be drawn to your company and want to be a part.

This includes writing attractive and good job descriptions, improving employee engagement, providing comprehensive compensation, and more.

• Effective assessment and selection processes

While talent attraction is an effective way to avoid a bad hire, it doesn't end there. Your assessment and selection process also has a role to play. When that is faulty, you risk hiring unqualified people. Don't play it by ear without a specific strategy. First, you should start by hiring an experienced recruiter or recruitment agency.

Ensure you carry out background checks and research thoroughly before working with them. Next, ensure you write comprehensive job descriptions highlighting the qualities and skills required from candidates with pay. Check whether you and the candidate have a career and cultural fit. Prepare for the interview and maximise the interview time. Don't forget to verify candidates' information before hiring.

• Don't overlook red flags

Don't be in a rush to hire. This may result in ignoring glaring or hidden red flags some candidates may display. Watch out for signs and follow your instincts. For example, bad candidates often don't ask questions during the interview. They also don't admit their weaknesses and flaws or avoid discussing them. In addition, they can seem rigid, and not adaptable.

What can we learn about early career talent recruitment?

Bad hires are costly. They will cost your business money and time and affect the company's performance and productivity. Therefore, endeavour to take your hiring process seriously, starting with having a definitive process.

Then combine it with an effective talent attraction strategy. Utilising the help of experienced recruiters will also go a long way.