Costs of Making a Bad Staffing Decision

Posted by Hiregy Staff on Apr 23, 2013 7:26:00 PM

Staffing Tampa companies with the right personnel is the ultimate goal for both the company hiring and the person seeking employment. Hiring the wrong candidate for a position is costly in terms of money, time, and morale for a company. There are hard and soft costs involved when the wrong candidate is hired for a position.

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Some hard costs associated with hiring the wrong candidate are:

  • Advertising: The cost of advertising which will have to be repeated because the company will now be looking for another employee.
  • Training: Any training that was provided outside of the company that was paid for by the company.
  • Testing: Drug testing, criminal background checks, and credit checks all cost money but are a necessity for hiring the right candidate.
  • Benefits: Benefits that may have to be paid for the departing employee. This of course is dependent on the amount of time the employee worked but different states have different laws regarding benefits and how they are distributed upon termination of employment.
  • Wages: Wages that may have to be double paid, paid to the departing employee, and paid to existing employees for overtime because they have to work additional hours in order to do the work for two. Wages paid to temporary help hired to take up the slack from the terminated employee. 

Soft costs associated with hiring the wrong candidate are:

  • Time: Time wasted on the hiring process that will now have to be repeated because the wrong candidate was hired. Time that is taken away from other work projects that must be completed because the hiring process involves everything from orientation to training.
  • Training: In house training provided by the Human Resources department, a supervisor, or a coworker is costly in terms of hours spent; the training time takes away from other work loads that must be accomplished.
  • Employee morale: Employees slacking on the job due to extended hours for taking up the slack for the terminated employee. Working too many hours may be lucrative financially but is not always desirable emotionally. When people are tired regardless of the financial upturn work attitude and fortitude may suffer.
  • Productivity: Loss of work produced by not having an employee in the position. In addition, you must consider the lack of productivity from other members of the work team having to cover the work left by the vacancy.   

Employee turnover is equally as bad for businesses as it is for candidates seeking employment.

Hiring managers should consider these costs carefully when planning their next hire by building a proper hiring profile, screening potential candidates diligently and making careful hiring decisions. The hiring experts at a Tampa staffing company is an option to help you with this process.

Staffing Tampa companies with the right candidate can be a long arduous process and involves much time, energy, and money for the hiring employer. And when it is done successfully it is a win/win situation for all involved!  

 

Download Hiregy's free Hiring Report for Tampa today.   You'll find lots of helpful placement, staffing and salary information which could help you in your current talent search.

2013 Mid-Year Hiring Report Tampa Bay Hiregy


Tags: hiring tips, hiring best practices, staffing tips

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