There’s one word that makes C-level executives, human resources departments, operations personnel, sales teams, and financial staffs cringe:
Turnover.
When a single new hire doesn’t work out, stress ripples through the organization. When it happens repeatedly, those ripples of stress quickly become a tidal wave that wipes out profits, employee engagement, and revenue growth. Turnover affects almost every aspect of a business, including tangible and significant costs such as squandered payroll expense, litigation, wasted training dollars, wasted onboarding dollars, and much more.
And yet these tangible costs, substantial as they are, really just represent the tip of the iceberg. Hiring mistakes hurt morale, productivity, customer relationships, and brand image. Once a company acquires a reputation for having heavy turnover, it will be seriously challenged to attract top job candidates, great customers, and top-tier suppliers.
The infographic below, What Are Bad Hires Really Costing Your Business? provides a high-level overview of the costs of bad hires, why it happens, and how to fix it. For new companies, it’s an excellent place to start putting together a solid recruiting team and interviewing process. For everyone else, the infographic serves as an excellent reminder and useful in-house training tool. Read on to learn more.