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No one sets out to hire the wrong person, but sometimes a decision is made by a company that isn’t quite right. A “bad hire” could come about from someone not being truthful on their CV or at an interview, showing their true personality once they’ve been hired, or not gelling with the new company culture.

In fact, a report conducted on behalf of Robert Half found that the top causes of a “bad hire”, as reported by managers from 5,000 companies, were as follows:

  1. Mismatch of skills (44%)
  2. Under-qualified candidates (42%)
  3. Applicants lying on CVs (37%) 

But the obvious financial implications aren’t the only ramifications that can be a result of a poor hiring decision.

In this guide, we’ll look at what these are and compare them to what a good hire for a business should look like, as well as offering suggestions on how to avoid hiring the wrong fit in the first place.


Financial Implications

Let’s start with the obvious; if a company hires someone new and they have to let them go, it’s going to cost money. Not only has the business gained little from the time and money spent on job advertising, interviewing, onboarding and training a new employee, but they’re now going to have to do it all again.

On top of this, a business also risks losing time, productivity and potential revenue from other employees involved in any interviewing, training or onboarding of the hire that has to be let go.

A Good Hire:

Get the hiring process right and your new employee will be well worth the time and money spent on finding them. You’ll know you’ve hired a good fit if they show some of the following traits within their first few days and weeks:

  • They adapt to the team well and begin to form friendships and working relationships.
  • They are keen to learn and develop and hit the ground running within their new role.
  • They are competent in asking questions if unsure of anything and understand new responsibilities well.

A good hire can still take a little time to settle, so give them breathing space and time to flourish.


Company Culture

If it turns out a new employee isn’t right for the job, chances are they also won’t have been a good fit with the company culture, which risks resulting in a negative or unsettling atmosphere. The last thing any business wants is a toxic working environment that causes more employees to leave too.

A Good Hire:

Most businesses make the right hire when it comes to finding someone who fits in with their company culture, as a couple of conversations (whether in person or done remotely) generally gives a good impression of someone’s cultural and social fit.  

To be extra sure, we recommend supporting an interview process with personality profiling assessments. If this is something you’d be interested in learning more about, contact Carrot Executive today


Employee Morale

Poor performers can lower the bar for other employees, with their bad habits, views on the company or involvement in office politics rubbing off on those around them. This could result in a change in the dynamics of a company’s culture as well as the morale of employees.

A Good Hire:

A positive hire for a business will be recognisable by their ability to influence employee morale in an encouraging way, particularly during difficult situations. They will listen to others and their opinions, be open to suggestions and weigh up both sides of an argument. Over time, a good hire will bolster a company’s employee morale.


Company Reputation

Word of mouth is no longer the only source for people to hear about a business and ex-employees thoughts on it. With the likes of Glassdoor and Google/Facebook reviews, anyone now can leave their views in the public domain and at the click of a button.

When someone leaves on bad terms it’s always worthwhile monitoring online review pages. And if someone does leave a bad review, know how to go about responding to them professionally and promptly. (Read more about how to respond to bad company reviews here)

A Good Hire:

The most a company could ask for from a new hire is someone who actively promotes their business in a positive light without being asked to. This could be via online reviews or speaking highly of their employer when liaising with industry-specialists 


Low Productivity

Research shows that managers spend 17% of their time (about one day a week) managing poorly performing employees. This could be by coaching someone who just isn’t getting to grips with the role, chasing them up on work due, or having to cover tasks they’ve been unable to complete.

Not only could a wrong hire hit you financially, but it could also result in lower productivity from other employees and some of your top performers feeling held back. You could also find yourself spreading your team members too thinly as they cover the work and projects started by the bad hire, as you spend time looking for their replacement.

A Good Hire:

If productivity levels begin to rise after a new hire joins, you’ll know you’ve made the right decision. A strong hire, especially at management level, will encourage other employees to work to their full potential and help them to see the results of the efforts they put in.  


How Carrot Executive can support you in making the right hire

The best way to avoid making the costly and timely mistakes associated with a bad hire is to employ the right person in the first place. And to do this, companies should be investing in the services and support of a recruitment or executive search agency, which can dedicate time and resources to finding the perfect fit for a vacancy.

That’s where we come in. If you have a key appointment to fill, Carrot Executive are expertly placed to guide you through the entire recruitment process. Underpinned by thorough desk research, our approach aims to uncover the best candidates, highlighting key market trends, and providing useful insights around the talent pool. Our collaborative approach ensures we’re only approaching the right people on your behalf, in the right way and with the right message.

For further information on how we can support you with your business-critical or hard-to-hire recruitment assignments click here or get in touch with Martin Anderson today via, call +44 (0)1625 541 032 or use the 'schedule a call' link below:

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