Bad-hires in the new normal

Sep 23, 2020 Insight Talent


Before bad-hires could be quickly identified if they are constantly late to work or goofing off at their desks.

So how do you identify bad-hires when everyone is working from home, because the cost of a bad-hire still exists.

As Mariah DeLeon, Vice President of People at Glassdoor, writes in Entrepreneur:

39% of chief financial officers surveyed by Robert Half International said that bad hires had cost them productivity, and 11% said a bad hire resulted in fewer sales... 

They also said that supervisors spend 17% of their time—which is about one day per week—managing poorly performing employees.

On top of hiring and salary costs, bad-hires cost your company in many other ways:

  • Financial costs: Bad-hires usually require more training than others in order to get the job done. And, if the bad-hire cannot meet expectations and needs to be replaced, the company has to spend more money on severance and replacement hiring.
  • Productivity costs: In addition to financial costs, bad-hires steal time away from their team members. Their substandard performance affects their team's overall productivity and might even cause personal conflicts with others. 
  • Employee morale costs: As time and resources are focused on the bad-hires, those who are actually productive will feel dissatisfied and start to disengage as they have to make up for the deficiencies of the bad-hire, weakening the bond of the overall team.
  • Reputation costs: Bad-hires are more likely to post negative reviews about the company on job boards, regardless of how true it is. And since these reviews cannot be removed or taken down, it hurts the company's reputation and its ability to attract top talent. 

As DeLeon notes,

The U.S. Department of Labor estimates that the cost of a bad hire can equal to 30% of the employee's potential first-year earnings.

During this time of the remote or hybrid workforce, do you have a structured process that can help you quickly determine if you've made a bad-hire even when they are working from home? Do you have a process that can quickly remove the bad-hires once they've been identified?

Now is the time to make sure you have a playbook for managing these challenges in the new normal.

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