Know the Real Cost of Hiring a Bad Employee in Your Company

August 5, 2016 5:50 am Published by

Know the Real Cost of Hiring a Bad Employee in Your Company
Every business strives to sustain in today’s competitive economy and so when it comes to hiring a talent
pool, companies wish to hire skilled and competent employees who can drive the company towards
progressive success. But hiring good employees is the toughest job. Mostly, small-scale businesses and nonprofit
organizations face difficulties to hire the best talents in their workplace.

An employer finds it difficult to hire good talents that can take their business to new heights. Usually, it is
observed that a bad hire can cost a lot to all organizations in terms of revenue, time, and energy, which
impacts the organization in several ways. Let’s check out each one in brief.



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A Bad Hire Affects Productivity

A significant aspect to quantify, but impactful one. If the new hire is not well-suited for the job or behaves
irrational or is simply incompetent, then it affects the bottom line. So, while you and your managers are
spending more time to train a new hire in the company, your business will suffer.

A Bad Hire Impacts Workplace Morale

A poor hire greatly influences employee morale. It becomes difficult for other team members to stay upbeat
when one team member requires much attention or fails to sustain team playing. For smaller organizations,
as similar scenario would lead to negativity spreading rapidly in the workplace, making other employees’
coming to work a chore.

Need Additional Supervision

Did you know that bad hires can cost business and the results can impact on sales? Supervisors spend
almost half of the day in training the bad hires who are incompetent in accomplishing their assigned tasks
on time. This means, the high-level employees are less focused towards revenue-generating tasks and
employee mentorship and are more focused on coaching under-performers.

Imbalanced Client Relationship

Your relationship with clients is very important, and it is equally significant that you hire good talents that
can look after your clients and satisfy their needs simultaneously. There are many organizations who have
ended their relationship with clients just because they failed to look after their client’s requirements. In
several cases, imbalanced client relationships have badly affected the business where the hired candidate
had failed to perform his/her tasks properly.

Yields Low Income and Profits

The performance of the employees is measured in terms of the revenue generated. A bad hire with low
productivity may not generate the desired level of revenues, on the contrary they would reduce the
productivity of the team, require more time investment of the supervisor, and lead to further reduction of

It takes lots of time and effort to train the new hires and when they don’t provide satisfying results, your
company will suffer. To avoid such scenarios, take time for screening every employee’s resume by ensuring
that they match your required expectations and get the right candidate for your company.