Depending on the position, a bad hire could set you back anywhere from $25,000 to $300,000.
That’s according to researchers at the National Business Research Institute (NBRI). They’ve created an infographic to explain their findings for the lowest and highest paying jobs. Based on their research, 66% of employers said they experienced negatives effects of bad hires in 2012.
Of these employers, 37% said the bad hire negatively affected employee morale. Another 18% said the bad hire negatively impacted client relationships. And 10% said the bad hire caused a decrease in sales. Cost per position
Researchers examined five main factors to help them estimate the cost of a bad hire:
loss in productivity – the annual salary of the employee
training costs – 25% of the annual salary of the employee
HR costs – calculated using the average HR Generalist’s salary
interviewing costs – calculated using the average HR Generalist’s salary, and
employment ads for a new hire – anywhere from $100 to $1,600.
When these factors are combined, companies take a huge hit to their wallets. Read on...