74% employers have made bad (costly) hires: study
A new study from US company CareerBuilder has given us a glimpse into the lives of employers in industries very similar to our own here in Australia, and it’s a tad confronting to see how often employers get it wrong.
According to the new survey, conducted by Harris Poll among 2,257 hiring and human resource managers and 3,697 workers, making the wrong hire isn’t just inconvenient, but it could cost your agency a hell of a lot too.
The survey showed companies lost an average of $14,900 (almost AU$20,000) on every bad hire in the last year, and it’s a common mistake — nearly three in four employers (74 per cent) say they’ve hired the wrong person for a position.
“It’s important to note that there’s a ripple affect with bad hires. Disengagement is contagious — poor performers lower the bar for other workers on their teams, and their bad habits spread throughout the organisation,” said Rosemary Haefner, Chief Human Resources officer at CareerBuilder.
“The best thing hiring managers can do is put in the time and effort on the front end to make sure they have the best available pool of applicants for every job opening. And, just as importantly, have good procedures in place for evaluating candidates.”
When asked how a bad hire affected their business in the last year, employers cited less productivity (37 per cent), lost time to recruit and train another worker (32 per cent) and compromised quality of work (31 per cent).
How do you spot a bad hire?
So how do you know if you’ve hired the wrong person? When asked what made them think they had made the wrong decision, employers who have made a bad hire said:
- While the candidate didn’t have all the needed skills, thought they could learn quickly: 35 per cent
- Candidate lied about his/her qualifications: 33 per cent
- Took a chance on a nice person: 32 per cent
- Pressured to fill the role quickly: 30 per cent
- Had a hard time finding qualified candidates: 29 per cent
- Focused on skills and not attitude: 29 per cent
- Ignored some of the warning signs: 25 per cent
- Lacked adequate tools to find the right person: 10 per cent
- Didn’t do a complete background check: 10 per cent
- Didn’t work close enough with HR: 7 per cent
Overall, this is how employers categorise someone as a bad hire:
- The worker didn’t produce the proper quality of work: 54 per cent
- The worker had a negative attitude: 53 per cent
- The worker didn’t work well with other workers: 50 per cent
- The worker had immediate attendance problems: 46 per cent
- The worker’s skills did not match what they claimed to be able to do when hired: 45 per cent
Workers have regrets, too
Employers aren’t the only ones making regretful decisions. Two in three workers (66 per cent) say they have accepted a job and later realised it was a bad fit, and while half of these workers (50 per cent) have quit within six months, more than a third (37 per cent) have stuck it out.
Workers who said they had taken a job only to realise it’s a bad fit said they noticed their mistake based on toxic work culture (46 per cent), boss’ management style (40 per cent), job didn’t match what was described in the job listing and interviews (37 per cent), and a lack of clear expectations around the role (33 per cent).
Don’t let the good ones go
While the cost of hiring the wrong person can be high, the cost of letting a good worker go is even higher.
According to employers, the average cost of losing a good hire was $29,600 this year. And while 75 per cent of workers say they’re loyal to their current employer, much less (54 per cent) say they feel their company is loyal to them.
On top of that, nearly a third (31 per cent) say they are likely to change jobs in the next year.
Latest News
Two thirds of Australians support introduction of tourism tax, survey reveals
Can you guess which generation was the most outraged at the news? Hint: It is exactly who you think!
“The consumer really just wanted more classic reward availability” – customers underwhelmed by Qantas FF shakeup
All this consumer wants is to sit behind someone that doesn't push their seat back to near-horizontal levels.
Aussie travellers warned of ‘significant’ visa shifts in destinations including Chile, US and Vietnam
To be honest are biggest advice for having a layover in the US, is just don't.
Profile: Delta CEO Ed Bastian
Bastian says the airline business isn't for the faint hearted. We're sure Alan Joyce would agree!
Final Call: Travel DAZE Exec early birds are about to expire
Much like the auctioneer at the hottest sale of the year, we're giving you one more chance to jump at this deal!
Forget the weekend! Experience Gold Coast launches mid-week travel campaign
Your boss might be a bit bothered if you jet off mid-week, but you'll be the envy of all of your Instagram followers.
Victorian Tourism Industry Council warns of losing tourism dollars to NSW & QLD
Trendy cafe's hidden in CBD laneways can only get so many tourism dollars, clearly!
AIME 2024 rustles up $330m for APAC economy
This figure is a 65 per cent increase on 2023, much alike The Nibbler staff's alcohol consumption.
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Star boss resigns, admits retaining NSW casino licence unlikely under his leadership
The CEO resigned after 18 months in the role. 'Another one bites the dust' rumoured to be heard playing in Pyrmont.
Corporate Traveller swings amateur golfers around the globe for World Golf Competition
How're your golf skills? Consider yourself a Tiger Woods or often get quadruple bogeys? We take after the latter.
Corporate travellers to spend big on Melbourne F1 despite financial pressures
Part of the attraction is sick days after the event as corporate travellers suffer creaked necks and blown eardrums.
Bonza officially kicks off Gold Coast-Darwin route
The Flying Purple Thumb is back at it with another route. We swear, we're going to make this nickname stick!
South West Sydney Tourism launches Western Sydney Tourism Awards
Penrith's 3 consecutive NRL premierships wasn't enough? The people of Western Sydney could fill the trophy cabinet more!
Hotels vs. Airbnb: Industry leaders at odds over who should pay accommodation levy
There's not as much gore in the Hotels vs. Airbnb saga as there is in Alien vs. Predator, but it's just as thrilling!
Singapore Airlines revamps premium economy with new menu, amenity kit
Felt Singapore Airlines was lacking "the sauce" (as the kids say). Bolster belief in the carrier's je na sais quoi here.
Business Events Adelaide set for 20th Destination SA event
Destination SA turns 20! Hopefully it's not celebrated with vodka cruisers and vapes like most 20th birthdays.
Boeing’s woes delay massive Virgin Australia order
This delay means Virgin staffers will be without that new plane smell, inspiring us to sell it in a can.
All the winners from the 2023 Qantas Australian Tourism Awards
Somehow missed this news recently? Good thing you're subscribed to our fabulous newsletter!
Corporate international travel from Brisbane up 30% YOY: Flight Centre
Queenslanders seem keen to go somewhere that actually serves good beer! Sorry, we actually like Great Northern.
Amora Brisbane undergoes $30m remodelling, geared up for MICE offerings
When $30m goes into an amazing hotel to get it geared up for MICE offerings, that's amore!
Corporate Travel Management’s CEO Laura Ruffles steps down
CTM confirmed that Ruffles will be stepping down due to a personal health issue, effective immediately.
Qatar Airways crowned World’s Best MICE Airline at World MICE Awards
You could say Qatar Airways really 'nabbed the cheese' with this one! Alright, we'll see ourselves out...
Qantas, Jetstar & Virgin hike airfares as supplier costs inflate
Supplier increases means you'll pay more. It's like pass the parcel, but instead of getting a present, you owe money.
NSW Central Coast wins global sustainability award for promoting ecotourism at ITB
NSW Central Coast jumped the gun on St. Patricks Day and got the green celebrations going early!
PHOTOS: RuPaul’s Drag Race stars hit Kings Canyon for Priscilla’s 30th anniversary
The stars have renamed the iconic spot 'Queens Canyon'. No name change to the adjacent 'Priscilla's Crack', however.
Air NZ to suspend Auckland-Chicago route amid aircraft troubles
Sorry Kiwis, your craving for authentic deep dish pizza will go unsatiated (or you could just fly with another airline).
Tasmanian Premier promises to build the world’s largest chocolate fountain if re-elected
If only sticky 6-year-old children could vote. Then the Tassie Premier would be guaranteed a victory!
The staggering amount invested in 2022/23 Australian tourism projects revealed!
Any guesses on how much it was? We'll give you a hint: It's between $1 and $9 trillion (hope this helps).
Marriott’s Bonvoy Lounge makes it a 5-peat at Formula 1 in Melbourne
If Formula 1 is so good, then why isn't there a Formula 2? Oh there is one... Never mind.
Virgin Australia posts $236m profit, but the outgoing CEO warns of turbulence ahead
Hrdlicka warns of tough times ahead, just after announcing she's leaving. We wonder if there could be a connection!
Ascott opens new 255 room property in Central Sydney
Bored of your bedroom and want 255 new ones to try? The new Ascott property is here to solve this very specific problem!
Work and play at the Radisson RED, Auckland
We aren't going to tell you what order to work and play in, just that you should be looking to do both at Radisson Red.
Swiftonomics 101: Just how much did fans spend travelling to see Taylor Swift?
Thought you'd heard the last of Swift, huh? Not in your Wildest Dreams could Swiftomania go out of Style!
Rex posts a $13.3m turnaround for 1H24, but still at a loss
Rex is slowly making its way back to pre-pandemic form. Much like us with our sporadic attempts at exercise.