What Does it Cost to Hire the Wrong Person?

Looking for the right talent, whether they be employees, consultants, or volunteers, can be a daunting process. When work life is busy, it’s easy to settle for someone who is almost good enough but falls short of your original expectations. What if you are wrong? What does it cost to set things right.

Corrective Action

Once you observe performance that doesn’t meet your expectations, you need to give the individual feedback on how their performance differs. Repeated lack of results require additional feedback, documentation, and eventually an exit plan. All of this will take your time, and possibly time from HR and legal. There’s obviously an impact to the person, possibly to both their finances and career. They might be a great and talented person, whom you have put in a role that is not a fit.

Organizational Distraction

When someone is performing poorly, just about everyone on the team can see it. Often they see it before you do. Since it’s a team, there’s a good chance that a poor performer will impact the deliverables of the team. Not dealing with the situation can result in serious morale impact to the team and the flight of your top talent.

Opportunity Cost

On top of all of the time you are spending managing this situation, you had a job that needed doing in the first place. All of that work, the distraction to the coworkers, and lack of achievement of your goals is going to cost across the board.

The True Cost of a Bad Hire does a good job at putting some hard numbers around the problem.

Forty-one percent of companies estimate that a bad hire costs more than $25,000, and one in four said it costs more than $50,000.

Clearly hiring the wrong person is an expensive proposition by all measures. Come join Grant Howe, Lynn Winter, and Jeremy Foreman at NTC14 for discussion on how to find the talent you’ve been looking for!

Want to find out more about the importance of hiring the best person for an open position? Don’t miss Love at first hire – finding the perfect match for your next technology project on Saturday, March 15 at 10:30am.

Grant Howe
Vice President, Research and Development
Grant Howe brings more than 16 years of experience to his role as VP of research & development for Sage North America's Nonprofit Solutions business, based in Austin, Texas. Sage currently helps more than 32,000 unique not-for-profit organizations in the U.S. and Canada increase efficiency and more easily manage their operations through the use of technology. Howe has presented at the NTEN Nonprofit Technology Conference (NTC) since 2009. He earned a master's degree in Software Engineering from Syracuse University in Syracuse, N.Y., and a bachelor's degree in Computer Science from the State University of New York (SUNY) College at Oswego.