I’m convinced bad hiring decisions are the biggest hidden cost in business. As most of the expense is intangible and doesn’t appear on a Profit & Loss Statement its all to easy to dismiss.
The reality is every time we make a bad hiring decision and have to dismiss the poor performer that is our profit literally walking out the door.
It’s not only the cost of filling a position which is particularly time consuming. You then have to train them and wear the on-costs of having employees (super, payroll tax, office expenses etc). Finally a bad hire generally has lower productivity and negatively effects those around them resulting in lower productivity and engagement levels for the rest of the team. For managers and executives the effect on their teams is multiplied as a result of the larger network effects of their position.
If you haven’t already you can request a download of the Actual Cost of Bad Hire Calculator here.