The hidden costs of mis-hiring

Organisations face a critical challenge when it comes to attracting and retaining top talent in today’s dynamic work landscape. Mis-hiring, when businesses employ the wrong person for a role, goes beyond the obvious financial implications. It can cause a wide-ranging set of costs affecting productivity, team dynamics, and overall organisational culture.

Our What Workers Want: When Applying to Jobs 2024 Report shows that more than three out of four employers have had a staff member leave the organisation within their first year because they were a poor match. In addition, 44% of professionals say they have left a job in their first 12 months because it didn’t live up to the expectations they gained in the application process.

As we delve into the intricacies of these issues, we'll highlight the problems a mis-hire can cause and how your organisation can avoid these pitfalls.

1. Time cost

Crafting a job description, promoting a role, shortlisting candidates, holding interviews and a successful applicant’s notice period all add up in terms of time. You should therefore evaluate your hiring process and see where it can be streamlined without impacting the quality of candidates applying for your jobs, such as minimising the number of interviews, or ensuring your application forms are optimised for mobile.

Making your hiring process more efficient also means it is less likely someone will drop out of the process itself. According to our What Workers Want research, nearly two thirds of employees have been deterred or almost deterred from a prospective employer because of a poor interview experience, with 38% saying the process took too long.

2. Resource cost

Hiring also comes with a cost to resources. HR departments and hiring managers are involved in promoting roles, reviewing applications and interviewing candidates, while team members will spend time onboarding and upskilling new starters. While all a necessary part of the hiring process, a mis-hire can cause hours’ worth of work to potentially go to waste.

3. Team morale cost

Mis-hiring disrupts team dynamics and derails long-term projects. When a new hire departs prematurely, existing team members are often left to carry their workload and deal with the gap in skills. According to survey insights from the 2024 Hays UK Salary & Recruiting Trends Guide, these skills shortages are negatively affecting productivity, employee morale and the ability to deliver projects, all of which can be detrimental to overall performance, motivation and engagement from staff.

Tips to limit the chance of a mis-hire:

1. Make sure what you’ve advertised matches reality: Some of the reasons why employees leave a role within their first year include training not being provided as expected, the job-ad content being incorrect or misleading, expectations for the role not aligning with their direct manager’s views or the salary and benefits being oversold. Your employee value proposition, or EVP, showcases to applicants why they should work for your organisation, but it’s vital that your EVP is aligned to reality to avoid someone leaving in their first year.

2. Give an authentic view of your organisation’s culture: 32% of employees have left a job in their first year because they didn’t fit in with the team or culture as expected. Employee reviews are a good way of providing insight into your team culture. Consider surveying your current workforce to gather their perspectives on working for your company and showcase these views on your website, as well as encouraging staff to leave online reviews on platforms like Glassdoor. Additionally, providing visibility into leadership team biographies can help applicants understand an organisation’s values, culture, and trajectory.

3. Get team members involved in the hiring process: Providing the opportunity for your existing staff members to meet applicants during interviews can assist in your decision-making process and reduce the likelihood of a mis-hire. Applicants are also open to interacting with their potential future work colleagues – 63% say they want to see the workplace before accepting a job offer and 45% say meeting the team is an effective screening method.

Mis-hiring’s hidden costs extend beyond balance sheets. Investing in better application processes, providing an authentic view of what it’s like to work for your organisation, and fostering positive experiences from the first point of contact are the main ways to avoid mis-hires.

Working with an expert Hays recruitment consultant means we will manage the hiring process from start to finish, navigating sourcing, application screening, assessment and the ongoing management and development of your people. Register a vacancy today.