Hiring the wrong person costs more than you think.
Cost is the number one reason so many organizations choose to handle their own hiring needs rather than working with a recruitment firm, like Riderflex. However, that cost can quickly get out of control if the organization chooses to hire the wrong person and has to go through the process all over again.
The dollars and cents of hiring the wrong person vary widely depending on the position being filled, but, according to a study conducted by CareerBuilder, even an entry-level position has an average cost of anywhere from $7,000 to $10,000. The same study found that the average costs of hiring the wrong manager are closer to $40,000. Imagine how much more money is at stake when you’re hiring for C-level executive positions, like CEO, CTO, CFO, CIO, etc!
And, these are just the financial costs of hiring the person. There are plenty of other costs that have nothing to do with finances.
The Others Costs of Hiring the Wrong Person
A decrease in teamwork.
Whether or not someone is a good cultural fit for an organization is often overlooked during the recruiting process. Unfortunately, this can have a huge impact on teamwork within the organization. Teamwork is something that takes more than experience and skill; it takes having shared goals and passions.
A decline in morale.
There are a lot of things that add to employee morale within an organization, and there are also a lot of things that can take away from it, including hiring the wrong person, especially the wrong C-level executive. When you hire the wrong person, it tells your team that you don’t really understand the culture of the organization or the needs of the team.
An increase in turnover.
There’s nothing more frustrating than working hard to accomplish something you believe in and being forced to work alongside someone who doesn’t share your passion or have the skill required to accomplish the goal. In order for an employee to be content with their job, they need the right tools in order to get it done, and having the right teammates is one of those tools. That naturally leads some people to move on to an organization that will provide them with the right teammates to help them get the job done.
A decrease in productivity.
The morale hit that comes from hiring the wrong person can affect almost every aspect of an organization, and productivity is absolutely one of those aspects. In fact, that same CareerBuilder survey found that 39 percent of businesses associated hiring the wrong person with a dip in productivity.
A damaged business reputation.
Hiring the wrong person — especially the wrong C-level executive — can damage an organization’s reputation in two ways. One, it can affect your internal reputation the same way it affects employee morale; when you hire someone that doesn’t fit in with the organization’s culture, it shows your employees that you don’t really understand that culture. Two, when you hire the wrong person, it affects your customers’ experience with your organization.
Get it right by working with Riderflex.
At first glance, handling your own recruitment needs may seem like the best way to save money through the hiring process, but the risk of getting it wrong is much bigger than you might think. Working with an executive recruiter can help you get it right the first time.
As Colorado’s go-to C-level recruiting firm, we can help you with every aspect of your executive search. A critical aspect of our success lies in our one-of-a-kind cultural analysis, which ensures that the candidates we provide for you not only meet the requirements for technical skill and experience, but also fit in with your organization’s culture.