Strategic Staffing: Calculating the Costs of a Mediocre Hire

We have all been there. You invest time and energy into hand-selecting the best person for an opening with your company. You pour over resumes, hold hours of interviews, and you meet Jane Doe. Jane is perfect for the job – her background screams over-achiever, her portfolio is stacked, and her attitude is charming, yet genuine. You hire Jane. Jane isn’t what she seems or else, the job isn’t what she anticipated and suddenly Jane isn’t the fit you imagined her to be. You might wonder – “could we have avoided this from the start? What did I miss?”

The truth is, hiring the right person takes recruitment expertise. By making a rushed or uninformed decision, your company will incur costs at all stages. Consider the following:

The costs to recruit

Recruitment of new talent can eat up some cost especially if you choose to DIY. Posting your opportunities across several job boards and using valuable work time to craft the perfect post copy has already required an investment before you meet your candidates.

The costs to interview

Taking a half-day for you and a team of your employees to meet the hopefuls results in a loss of otherwise-productive time and the requisite per-hour breakdown of everyone’s salaries paid in order to make this possible. If no hire is made, or if a bad fit is brought on, this investment is lost.

The costs to onboard and train

The choice is made and the new employee is now taking up work space and the requisite equipment and energy to power that space. If the employee is provided with business cards, nameplates, uniforms, a laptop, or other resources – those cost. In some cases, the cost cannot be redistributed to this hire’s replacement. Paperwork takes time and authorization. Training this employee incurs the cost of company time and materials.

The costs of salary

This one is obvious. When you hire, your new employee will cost your company money. If he or she is unproductive or worse – detrimental, you may never see the ROI.

The costs to other team members

Time collaborating with and getting to know this new employee will be better used in other ways if your new employee doesn’t work out. In some cases, this can be stressful for your staff who should be hard at work without interruption.

The costs to manage

In addition to the trainings provided to the employee, managers will need to be providing reviews of the employee and helping to acclimate him or her. This process may include phone conversations and emails, dedicated meetings, and in general, time that could have been spent differently.

Ensure that your company’s time, money, and other assets are maximized and lower costs by partnering with the recruitment agency that knows talent best. Malone Workforce Solutions provides a bank of talent hand-picked for your needs and the culture of your company. Learn more about the experienced Florence and Lexington recruiting professionals at Malone and contact us to get started today!


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