If you’ve ever made a hiring mistake—and who hasn’t?—you know the consequences can be painful. Many of them—including the estimate that a bad fit for even the lowest paid job will cost an employer $25,000—are presented in a National Business Research Institute infographic. And a widely cited statistic attributed to the U.S. Department of Labor, which has long offered employers guidance on good hiring practices, puts the cost of a bad hire at 30 percent of the employee’s potential annual salary.
Of course, the smaller your business, the tougher those costs are to absorb. And those estimates don’t even account for damage to employee morale, community relations, and customer satisfaction.
In a LinkedIn blog post, HootSuite CEO Ryan Holmes recently offered his tips for avoiding making a bad hire. And Zappos CEO Tony Hsieh once revealed to Fast Company that one of his strategies for weeding out misfits and “people who are just there for the paycheck” is to offer a $2,000 bonus to anyone who’dRead More »from 5 ways to attract the right new hires in 2014