A study conducted by CareerBuilder found that 69% of employers reported that bad hires lowered their company’s productivity, negatively affected moral, or resulted in legal issues. All of these negative effects have associated monetary costs that can snowball if a company makes a habit of hiring the wrong people.
Bad hires weaken your company from the inside, creating unnecessary conflicts and hurting productivity for any position that relies upon the bad hire. Thus, the consequences of bad hires tend to multiply very quickly. On the other hand, good hires can build your company up, and the more good hires you’re able to make, the greater your benefits will be.
The Whole Person Approach
At Level Up Leadership, we advocate using pre-hire assessments to better understand who a person is on a holistic level before extending an offer of employment. A resume and an interview alone won’t give you a full understanding of a person’s values, passions, and personal characteristics. Without understanding these aspects of a person’s personality, companies can’t get a good sense of whether or not a person will work well within their particular organization. Too often, HR teams end up using their “guts” to decide whether a person will be a good fit, and this unscientific approach leads to millions of dollars wasted on bad hires every year.
Employee assessments help eliminate bad hires, creating exponential benefits. Why exponential? Because avoiding bad hires takes away the negative impacts of decreased moral, diminished productivity, and time lost, while good hires add in the benefits of a stronger team, better work, and a more focused business. Every person you hire who both does their job well and thrives within your company culture is bound to grow into an asset that benefits your business for years to come. The more cohesive and happy your team is, the more likely they will be to remain loyal to you, strengthening your business from the inside and creating lasting work relationships that are fruitful and productive.
Every company is made up of people first and foremost. Bad hires are like dead weight, driving companies down. Consider using employee assessments the next time you have an open position to avoid bringing dead weight onto your ship and instead find yourself a person of real value.