The employees you hire are not like the products you buy at a supermarket. You can always return a bad product and get a full refund. But if you make a bad hire, there may be harsh consequences.
You may not realise it all at once, but your business will pay for the bad hire in several ways.
Effects on productivity.
A bad hire may hurt the company culture. You and your managers may spend significant time trying to put out fires caused by that bad hire. Your productivity is likely to go down even before you notice it. If the erring employee is in sales, you might feel the full effect of low sales figures.
Effects on finances.
Your company is responsible for paying the employee and giving them benefits. That’s why the employee is supposed to give something back to the company, namely good performance and contribution. A bad hire is not only a drain on finances in terms of salaries; they are also a drain because of the training you give them. If you have to let them go, you may have to give them a severance package. Next, you’ll have to spend more money looking for and then training a new candidate.
Effects on culture.
A bad hire can be disruptive, affecting the morale of the other employees, even if those employees used to be productive and happy. Teamwork may be affected. If you act too slow in letting the bad hire go, other people — the good people — might decide to leave.
Effects on reputation.
It only takes on Tweet these days to send a company reeling. Your employees may start ranting on social media. To make matters worse, that bad hire may be responsible for all the negative talk about your company coming from your customers. It can quickly turn into a public relations nightmare, and all because you made one bad hire.
Before hiring an employee, make sure to do your due diligence. A background check may be time-consuming, but at least it can save you a world of trouble. You can even do a national police check with a QLD employee screening provider. Call previous employers and ask about the applicant. One call can give you a pretty good idea what you’re looking at.
Employees are an investment too. It’s important to invest in the good ones, the ones that can help your company grow, not drive it to the ground.