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4 Surprising Costs Associated With Mis-Hires

4 Surprising Costs Associated with Mis-Hires

Mis-hiring is known to be a costly mistake for businesses. While estimates vary, one study suggests that hiring the wrong candidate can cost between 5-27 times the employee’s salary. 

Drastic financial consequences aside, there are many other more surprising costs associated with mis-hires. From time taken out of others’ schedules to onboard and train a new hire, the loss of productivity to a decline in company morale, this post will cover the true costs of mis-hires. 

1)    Loss of time

Hiring a new employee takes time. From identifying the role you’d like to fill, and the ideal person to fill that role, to posting the role on your website and job boards, sourcing candidates, interviewing individuals and negotiating salaries, the multi-step procedure of hiring a new employee is time-consuming to say the least.

According to Glassdoor, if your company has 249 employees or less it will take just under 20 days for you to interview and identify a new hire.  If you’re a larger company with 1,000 to 9,999 employees, hiring will take 26 days on average. 

While the hiring process takes up valuable time and resources, once this stage is complete more time will be lost in trying to train your new hire and ramp them up so they can start performing in their new role. 

If things don’t go as planned and you decide the new hire isn’t a good fit for the role, you’ll need to begin the hiring process over again. 

2)    Loss of Productivity

Hiring someone with an awesome resume but is just not a fit for the role can be a drag on your company’s productivity.

If someone is not a good fit for the role, that can have a dramatic impact on day-to-day productivity. Imagine an Account Manager who lacks the ability to relate well to people. That can not only alienate clients, but it can also impact your brand in the marketplace.

While the rest of the team spends time helping to complete the work of the new hire, their own productivity levels will decrease. With an underperforming individual on the team, other employees will lose time.

If the new hire is in a senior management role, the impact is even greater as their inability to lead the team will result in lower productivity. A poorly managed team will mean that their strengths and weaknesses are not being properly applied and the team’s overall productivity will drop.

3)    Decline in Morale

Employing an individual who is a bad fit for the role will most likely lead to a decline in their team and perhaps even more broadly within the organization.

While some employees may see an employee as a poor fit for the role, it will lead to others to lose their motivation and belief in the team and organization. Perhaps others will feel that their good work isn’t recognized and that they should have been promoted as opposed to the hiring of an unfit individual.

Once your employees begin to question the values of your organization, they may begin to mentally check out and feel less invested in their team and company goals. 

Making a poor hiring choice will lead individuals to question where the company is going and what the perceived value of the organization is. 

If your mis-hire is unengaged because the role is a poor fit for them, their low engagement and lack of effort can spread to other employees.

And disengagement is widespread enough already – according to this study, less than one-third of U.S employees report being enthusiastically involved and committed to their work. To have an engaged and enthusiastic workforce, it’s essential that a new-hire doesn’t detract from the engagement your team already has.

4)    Substandard performance

If your new hire works in a performance-based or target-driven role like sales, substandard performance will lead to a decrease in how many targets or quotas are met. 

Perhaps your company is dependant on reaching certain monthly targets. If you hire someone that is unfit for the role, it’s inevitable that goals won’t be met. 

Poor performance can spread throughout a company like wildfire. Once other employees realize that the new hire can get away with a lower standard of work or reduced output, they too may begin to lower the level of work that they produce. Hiring someone who performs poorly can potentially lower the bar for the rest of your employees.

Why using Work Style TM Assessments can help you avoid the costs of a mis-hire. 

A bad hire isn’t always easy to identify before or after you’ve taken them on. During the hiring process, it can be all too easy to focus on an individual’s skills and experiences instead of if they will be a good fit for the role and culture of your workplace.


Focused on hiring for fit, the deltPRO Work Style Assessment is designed to help you hire the most suitable candidate for the role. Instead of exclusively focusing on skills, experiences, and qualifications, the Work StyleTM Assessment will identify an individual’s preferences, strengths, behaviors, and areas for development. Taking under 10 minutes to complete, the assessment will help you make an efficient and well-informed decision about a candidate’s suitability for the role.

Once you hire for fit, you’ll find that you make fewer poor hiring choices.  More well-considered hiring decisions will result in your organization hiring the right candidates for the role and create a more productive and happier work environment. 

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