Costs of a Bad Hire Revealed | United States

Costs of a Bad HireRevealed

© 2017 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.

The Hiring Environment Has Transformed

2 © 2017 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.

Shortage of skilled talent

Condensed hiring timelines

Greater competition forthe best people

But Smaller Businesses Also FaceUnique Challenges

Lack ofinternal/HRrecruiting resources

Limited knowledgeof the specializedemployment market

Limitedaccess tothe passivejob seeker

And mostof all …limited time


49%said most hiringmanagers haveunderestimatedthe complexityof the hiringprocess

Small Business Owners Sound Off onHiring Challenges

65%admitted toproblems withtheir process

81%confessed tomaking a bad hire


Robert Half survey of more than 1,000 business owners and human resourcesmanagers in the United States at companies with 1 to 499 employees.

Hiring the Right People Can Help DriveRevenue, Expansion, SuccessBut doing so depends on a solid process.

If companies donʼt have a reliable system,costly hiring mistakes result.


Reviewing hundredsof resumes

Conductingmultiple interviews

Making a finaldecision and

extending an offerManaging the

reference check process

53%reported increasedstress on the team

Numerous Costs of a Bad HireOn average, business owners estimated 45 hours were wastedon hiring and onboarding employees who did not work out.

20%cited decreasedconfidence in managers’ ability to make good hiring decisions

37%noted increased stresson the manager



Can You Afford the Costsof a Hiring Mistake?

Mistakes Are Identified Fairly Quickly ...but Take a Long Time to Fix

Realized BadHiring Decision

Time It Took toLet Person Go

Time Passed Before aReplacement Started

58 percent said it took less than amonth to realizethey made a badhiring decision...

but it took more than twicethat time on average(8.8 weeks) to let theperson go.

Nearly five more weekspassed before areplacement startedworking, with 68 percentof businesses putting theadded workload on existingstaff during this time.

17 W E E K S



58 percent of respondents said the best new hires comefrom referrals, including employees and recruiters. Of the businesses that use recruiters, 76 percent said a recruiter was able to find a candidate they wouldnʼt have found on their own.

4 Ways to Improve Your Hiring Process

#1 – BRANCH OUT

Tip: Donʼt rely on posting jobs online as your sole hiring strategy and simplyhope the right person will apply.



43 percent said working with a recruiter saved the companytime by doing most of the work; 36 percent said it saved them money by finding someone quickly.


#2 – DELEGATE

Tip: Use a specialized recruiter to reduce hiring timelines and save money.



32 percent of businesses working with recruiters said they do so for the service guarantee.


#3 – GET A GUARANTEE

Tip: Ask recruiting firms about their placement success rates and what they offerif a new hire doesnʼt work out.



Along with lining up your next new hire, recruiters can helpyou find temporary professionals to ease the burden whileroles are vacant.


#4 – BRIDGE THE GAP

Tip: The right person can alleviate the stress on existing staff, keep projects movingand be evaluated on the job for a potential full-time role.



Robert Half can help you find talent andavoid costly hiring mistakes.Our specialized recruiters know the local hiring market and canoffer a range of services:

• Streamline the hiring process• Identify active and passive candidates• Promote your organization and the job opportunity• Interview candidates to evaluate hard and soft skills• Set the salary range and manage negotiations• Find temporary staff to bridge the gap during the search• Provide a service guarantee

Let us manage the process so you can focus your time on the business.


For More Information:

1.877.617.9431roberthalf.com/time-to-hire

www.roberthalf.com/time-to-hire?utm_campaign=2017_SMB&utm_medium=Marketing_Collateral&utm_source=Slideshow

Costs of a Bad Hire Revealed | United States

Recruiting & HR

Transcript of Costs of a Bad Hire Revealed | United States