The Bad Hire: A Financial Abyss Disguised as a Resume (and How to Avoid It)

We’ve all heard the saying “time is money.” But did you know a bad hire can cost you far more than a few extra hours at the office? Indeed, hiring the wrong candidate can have a significant financial impact on your business.

According to a CareerBuilder study: [https://www.businessnewsdaily.com/9066-cost-of-bad-hire.html], the average cost of a bad hire is a staggering $17,000 USD. However, this number doesn’t capture the full picture. Other sources, like Northwestern University: [https://www.businessnewsdaily.com/9066-cost-of-bad-hire.html], estimate the cost can reach up to 30% of the bad employee’s annual salary.

So, what explains these figures? A bad hire creates hidden costs that quickly stack up:

Direct Costs: Time and resources spent recruiting (job postings, agency fees, etc.), initial training for the new employee, salary paid during an unsuccessful probationary period.
Indirect Costs: Team productivity loss due to the unfilled role, lowered morale among colleagues working with a non-performing member, negative impact on customer service if the employee can’t deliver, additional costs associated with finding a new candidate.

Beyond the financial toll, a bad hire can also damage your company’s reputation and work culture.

Thankfully, there are solutions to avoid these costly scenarios!

TestoHire is a skills assessment platform that helps you hire smart and identify top talent from the outset. By offering customizable skills tests and an automated scoring system, TestoHire enables you to:

Objectively assess candidate skills based on your specific needs.
Save time by quickly eliminating unqualified applicants.
Make informed hiring decisions based on concrete data, not subjective impressions.
Reduce the risk of bad hires and their associated costs.

Investing in TestoHire is an investment in your company’s success!

Start hiring smart today. Sign up for TestoHire and take advantage of your free trial to see how our platform can help you avoid costly hires.

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