Even in the best of times, hiring an employee who doesn’t work out is painfully costly. The financial hit to an employer varies from position to position and industry to industry, but the U.S. Department of Labor reports that this cost is, at a minimum, about 30 percent of an individual’s first-year earnings.
Since the outbreak of Covid-19, the challenge has been more real than ever, as businesses have struggled to handle increased operational and financial constraints, coupled with what has become a candidate-driven market.
- The global pandemic has led many people to realize they value their time much more, and much differently than they did in the past. The result? The Great Resignation of 2021, which saw a record number of workers quitting their jobs. This included 4.3 million Americans resigning from their jobs in August 2021 and the nation’s “quit rate” reaching a 20-year high four months later. We’re well into 2022 now, but the struggle to attract and retain top talent continues.
The labor market has never been tighter.
As a result of labor shortages related to the pandemic, candidates with in-demand skillsets have greater autonomy to dictate where they will work and what their schedules, benefits and perks will look like. Unless a company is prepared to meet these demands and be flexible and candidate-friendly throughout their hiring process, the risk of a bad hire rises.
Long recruiting and onboarding and training timelines add to the challenge.
As noted by LinkedIn, the full cycle recruitment process begins when an organization needs to fill a position and ends with onboarding a new hire. And, it can take, on average, 36 business days.
- Training and development are also key to the success of a new hire. And while the training cost of $1,071 per employee in 2021 was less than 2020, it’s still a significant expense. If your turnover is high and you’re spending significant time training new resources, both productivity and morale are bound to plummet, leading to impactful lost business opportunities.
Be sure to fully vet every candidate.
It can be tempting to cut corners when a great candidate comes your way – but make sure they really are great before you make them an offer. Fully vet and evaluate them before bringing them onboard. Because if you land a new employee who’s fully invested in the long-term success of your business, it’s worth every minute and every penny you invest in hiring them.
Get the expert help you need.
You need to be fully committed to finding the right candidates to avoid costly bad hires, especially in today’s market. Search Wizards can help you address all the related issues and obstacles as you build the core of your workforce: your talent acquisition team. Because they’re the ones who can take all the other hiring stresses off your hands. We focus exclusively on matching top recruiting pros with leading employers – and we look forward to tapping you into our extensive network, insight and expertise. Reach out to us today to learn more.
