The true cost of a bad hire is surprising. The US Department of Labour estimates that hiring the wrong person costs your company upwards of 30% of their first year’s salary. It also shakes the confidence of other employees in the robustness of your hiring process and the decision-making of the company in general. A really bad hire can cost you good employees, as they burn out trying to compensate for the new starter’s errors.
The higher up the chain of command you go, the more dramatic the impact of a new hire can be, for good or bad. A good executive can inspire people to go further and be more productive well outside their direct reporting chain, while a bad one can demoralise a whole company if something isn’t done.… Read the rest