Retaining your existing employee Vs perils of a new hire!
There is a time when every hiring manager thinks they have found the right fit for a vacant position. They have spent hours sorting through profiles, short listing candidates and picking the best one. But in a very short time they realize the fit isn’t right — culturally, technically or otherwise.
Hiring a new person for a role can involve a lot of cost, time and heartache.
Loss due to not retaining an existing employee:
- Losing the experience, knowledge, customer rapport, network and reliability of the employee who is leaving
- Cost for training a temporary replacement
- Your current employees are overworked as they need to compensate till the vacant position gets filled
- Losing the productivity due to training or temporary replacement
Loss during Hiring the new candidate:
- Cost for Advertising for the position
- Time and man hours spent for sourcing and interviewing
- Hiring costs
- Compensation cost for temporary hire
- Overtime cost for replacement
Loss after Hiring the new candidate:
- Learning time for new hires
- Adaptability to new culture
- Time to understand the ropes to productivity
- Cost for Induction
So after all this cost, cost as in “time, money and effort” if there is a wrong fit, how does it affect your business?
- Loss of Productivity: The new hire is unable to be productive as he does not find the job to be in line with his skills
- Loss of training time: The new hire is not likely to use the training into use if he cannot understand or sync with it
- Low Motivation: People generally like to be good at things they do, So if the new job is taxing for the new hire he may be stressed and have low motivation to work
- Team Impact: The introduction of a new hire into a team will take some time to settle down. A de motivated new person is the last person you want into your team
- Loss of Customers: You may lose customers due to the inept work or interaction of a new hire
There are just a few of the things which may go wrong while making a bad hire. Some of the most compelling reasons stated by hiring managers for making a bad hire is ‘lack of matching skills’ and ‘not defining the Job accurately’. So here are two critical factors to look out for, next time you put on your hiring hat for a new employee!