Job Vacancies Cost Companies $5,000 a Month. But These Hiring Mistakes Can Cost You MoreMarch 13th, 2014 | Articles, Hiring Resources, Job Search | No Comments »
An empty chair stands vacant in the corner of your office, begging to be filled as it overloads your employees with added work. Not filling it, according to a CareerBuilder study, is costing you about $14,000 every three months. While it is important to move quickly to fill it, making one of these hiring mistakes in the process could wind up costing you more.
Don’t cut costs by hiring below average people
$5,000 a month is a hefty price to pay for a job vacancy. To make matters worse, your team’s morale is likely diminishing because of the added workload. But taking a hiring shortcut by onboarding a person with below average skills will likely cost you even more.
For example, a single employee making $62,500 a year, who is terminated after 2.5 years of employment, could cost your company up to $840,000 (including hiring costs, pay and benefits, severance for termination, and loads of missed business opportunities). That equates to about 180 months (15 years) of costs for having an empty chair.
Don’t hire based on skills alone
Employees are more than numbers and skills. Eight hours a day, five days a week is a long time for a person to spend with your team, so ensuring a cultural fit is just as important as the skills he or she has.
A toxic workplace is bad for business and productivity. It could also drive you up the wall as you scramble to resolve conflicts. Introducing candidates to your team can help in the hiring process. In fact, it is not at all uncommon for management to involve employees in the hiring process. The increased morale and productivity are well worth the extra effort.
Don’t wait for the perfect candidate
Hiring shortcuts are bad for business, but the scenic route isn’t the best way to go either. Yes, the perfect candidate for your company is likely out there somewhere, but embarking on an endless quest to find him or her is as perilous as it is costly. You are essentially running the risk of passing up talented employees while searching for a unicorn in a labyrinth.
Don’t necessarily jump on the first qualified candidate you come across, but don’t pass up a good deal when you find one either.
By Kevin Withers