Small businesses can’t afford to make bad hires
Running a small business requires owners to wear many different hats. You may have to become the hiring manager, or assist your current hiring manager, who also helps out in other areas of the business. If you only have a handful of employees at your company, losing even one can be extremely disruptive to your everyday and long-term operations until you hire someone new.
While these initial losses are unfortunate, the costs associated with making a poor hire can far exceed those previously accrued. With any new hire, there is time lost to training sessions and onboarding efforts. With a bad employee, these costs can grow exponentially. In certain cases, it may take a long time to help them adjust to their new position if they are not adequately experienced or prepared. If they are the wrong fit, this means that you will have to let them go and then start your costly hiring process once again. This could lead to further time and resources lost, with no new employee to benefit from.
What are the specific problems associated with bad hires?
No matter what size your company is, bad hires are detrimental to your business. On average, it takes around five weeks to fill a normal-level staff position and seven and a half to hire a management-level employee, according to research from Robert Half International. While this may be longer or shorter for a small business, depending on the location and industry, any time lost due to a hiring mistake costs your company productivity, worker morale and revenue.
Of those surveyed, around 41 percent of hiring managers and HR professionals estimated that poor hires cost their businesses thousands of dollars. Like the majority of owners, you may not have much to lose on a bad hire. Additionally, 39 percent of those interviewed said poor hires cause a loss in productivity and 95 percent said hiring the wrong employees negatively affects company morale in some capacity.
“A hiring mistake costs your company productivity, worker morale and revenue.”
“Companies can’t afford hiring mistakes, which are costly and can erode staff morale,” Max Messmer, chairman and CEO of Robert Half International, explained. “Finding the right match requires time and attention, and it’s something even busy managers need to make time for.”
How can small businesses hire smarter?
One of the first steps for making better hires is to carefully consider your job posting. Does it provide a comprehensive and straightforward guide to what your company is looking for? Ambiguous job descriptions can draw in under-qualified candidates, wasting both your time and theirs. Far worse, dishonest applicants could fool you and get hired, leading to significant losses in most areas of your business.
It’s important to look past a candidate’s resume or interview skills. Though you may be wanting to hire a communications manager or programmer, your entire team must be prepared to tackle certain projects or take over other job tasks when people leave or are unable to perform. While you want candidates who exceed their own position’s expectations, see what other skills or talents they have to offer.
If you are unsure whether your applicants have the necessary skills for your position, consider integrating pre-employment tests into your hiring process. These tests assess not only if your candidates have certain skills, but also how talented they are and to what degree they can perform. As a small business, you can’t afford to make the wrong choice, so contact EmployTest today to see how we can help you make the right one.