{"id":9479,"date":"2019-03-04T12:20:00","date_gmt":"2019-03-04T17:20:00","guid":{"rendered":"https:\/\/www.jobillico.com\/blog\/?p=9479"},"modified":"2019-10-22T07:54:47","modified_gmt":"2019-10-22T11:54:47","slug":"the-business-impact-of-bad-hires","status":"publish","type":"post","link":"https:\/\/www.jobillico.com\/blog\/en\/the-business-impact-of-bad-hires\/","title":{"rendered":"The Business Impact of Bad Hires"},"content":{"rendered":"\n

A poor hiring process impacts the business in many ways, so it never ceases to surprise me that companies don\u2019t make hiring more of a business priority. With a poor hiring process, there\u2019s a much higher risk of recruiting the wrong person. The direct impact of hiring a low-performing employee is fairly obvious: they\u2019re not going to perform the job adequately, they may make expensive mistakes, and they\u2019re not going to achieve the outputs and results they were hired for.<\/p>\n\n\n\n

The Indirect Impact<\/h2>\n\n\n\n

The indirect impact is less obvious. A poor performer who stays can have many knock-on effects. First, mistakes or issues with delivery can impact the performance of other members of the team or even other teams. Second, if the poor performer\u2019s problems are around attitude or personality, that can cause waves throughout the team and beyond, and impact the performance of everyone around them.<\/p>\n\n\n\n

Beyond that, however, there\u2019s something else we need to consider, and it\u2019s something hardly anyone ever gives thought to: the impact of hiring a \u201csolid\u201d performer, someone who puts their head down and delivers everything demanded of them\u2026 and nothing more.<\/p>\n\n\n\n

The Impact of Hiring a \u00ab\u00a0Solid\u00a0\u00bb Performer<\/h2>\n\n\n\n

Hiring an OK performer when you could have had a high performer has an opportunity cost too. Imagine hiring a solid performer for your sales team. Their target for the year is $1 million, and at year end they\u2019ve achieved it. You may not see that as a problem\u2014after all, they delivered their target.<\/p>\n\n\n\n

But what if a stellar performer in the same role could have spotted additional opportunities in the market that would have allowed them to close $10 million in the same period? The hiring process that turned off that stellar performer and left you with only that OK performer to hire has just cost you $9 million. And because they\u2019re doing their job and meeting targets, it\u2019s going to be hard to get rid of them. So, next year you\u2019ll lose out again. Electronic Recruiting Exchange estimates the financial impact of hiring a top performer at 10 to 100 times the person\u2019s compensation, so hiring a single top performer at $100,000 per annum salary has the potential to add $1 million to $10 million to a company\u2019s revenue every year that they stay with the company.<\/p>\n\n\n\n

Find out how to post your jobs on Jobillico!<\/a><\/p>\n\n\n\n

The Negative Impact of a \u00ab\u00a0Poor\u00a0\u00bb Hire<\/h2>\n\n\n\n

If you don\u2019t think a single lazy or incompetent employee can damage an entire organization, think again. The negative impact of a poor hire spreads across the organization through their relationships\u2014internal and external\u2014and their interactions with peers. Psychologists say that negative interactions have a far more profound and lasting effect than positive interactions do. Past research shows that adding just one \u201cbad apple\u201d to a group can drive down performance by as much as 30 to 40 percent, even when other employees are functioning at their peak. Why? It turns out that a bad apple\u2019s destructive behaviour is contagious, distracting and dragging down everyone around them. Imagine a team of five members built on collaboration. If a new person comes in who isn\u2019t living up to their commitments, they\u2019re going to take down the whole team\u2014especially if they\u2019re a crucial piece of the delivery model.<\/p>\n\n\n\n

Adding just one \u201cbad apple\u201d to a group can drive down performance by as much as 30 to 40 percent .<\/p><\/blockquote>\n\n\n\n

A bad apple isn\u2019t necessarily someone who behaves in a deliberately disruptive way, however. Over the years, I\u2019ve worked with many people who were very sociable and loved to talk, but they distracted people from their jobs. Unfortunately, that kind of behaviour can easily be overlooked by management because it\u2019s not overtly destructive, and eventually it becomes accepted behaviour.<\/p>\n\n\n\n

Assuming that you do spot the bad apple, what do you do about the situation? Is it a problem that can be resolved through coaching and guidance? Will you sit it out and hope they decide for themselves that they\u2019ve made a mistake and the role isn\u2019t for them? Or are you going to try to performance manage them out as quickly as possible and cover up your hiring mistake, which means you\u2019ll need to hire a replacement again?<\/p>\n\n\n\n

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Hiring Right <\/a>– How to Turn Recruiting Into Your Competitive Advantage<\/figcaption><\/figure><\/div>\n\n\n\n

According to a study by the Society for Human Resources Management, the higher an employee\u2019s position and the longer they remain in that position, the more it costs to replace them and the harder it is to find suitable candidates. Those two factors together make it tempting to give bad hires in a senior role even more leeway than someone more junior. Interestingly, the SHRM study suggests that senior hires are less likely to work out than junior-level hires, but at those higher levels it can take up to two years for the problems to become apparent\u2014if the person doesn\u2019t leave first.<\/p>\n\n\n\n

The pressure to fill open positions quickly, especially in fast-growing organizations, means a hiring manager is more likely to hire a below-average candidate just to fill the role rather than waiting for a better candidate to come along<\/p>\n\n\n\n

Ultimately, however, the biggest problem is that recruitment is often reactive: you hire when a position becomes open and has to be filled. The best time to look for candidates, on the other hand, is before that position becomes available\u2014before, in other words, it becomes an emergency. That allows you to take your time finding the best candidates, vet them extensively, and reach the best decision. Unfortunately, that proactive approach only ever happens in about 1% of hiring situations.<\/p>\n","protected":false},"excerpt":{"rendered":"A poor hiring process impacts the business in many ways, so it never ceases to surprise me that companies don\u2019t make hiring more of a business priority. With a poor hiring process, there\u2019s a much higher risk of recruiting the […]","protected":false},"author":33,"featured_media":9482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[343],"tags":[],"class_list":["post-9479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gestion-de-personnel"],"_links":{"self":[{"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/posts\/9479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/comments?post=9479"}],"version-history":[{"count":5,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/posts\/9479\/revisions"}],"predecessor-version":[{"id":11202,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/posts\/9479\/revisions\/11202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/media\/9482"}],"wp:attachment":[{"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/media?parent=9479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/categories?post=9479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jobillico.com\/blog\/wp-json\/wp\/v2\/tags?post=9479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}