When companies look at their investments they frequently will look at the total cost of the investment, then they look at the return and then they will look at some of the other factors including opportunity costs to determine whether it was a good investment or not.
Why don’t we do the same thing with our hires?
A bad hire costs us a lot. It’s not just the cost of the salary and benefits but what about the cost of training the new hire? What about the lost productivity that is inevitable with new hires? What about the lost revenue from their bad work? What about the lost goodwill they can cause with your customers and potential customers? What about the lost great hire you could have made but instead went with this hire?
The cost of a bad hire is extremely large so if that is the case, why aren’t we spending more time and money to make sure the new hires are good hires?
Just something to think about.
Have a great day!