July 11, 2013

CareerBuilder: Majority of Employers Undermined by Costly Poor Hires

increasing and decreasing line graphBrand new research from CareerBuilder has revealed that most employers report being hit hard in the pocketbook by bad hires, leading to costly negative impacts on those companies. A list of top consequences of making bad hires include revenue loss, decreased productivity, declining employee morale and client relations. So far in 2013, 66 percent of U.S. employers say a bad hire has led to increased operating costs. What’s more, 27 percent reported that a single bad hire has resulted in loss exceeding $50,000.

“Making a wrong decision regarding a hire can have several adverse consequences across an organization,” Matt Ferguson, CEO of CareerBuilder, said. “When you add up missed sales opportunities, strained client and employee relations, potential legal issues, and resources to hire and train candidates, the cost can be considerable. Employers are taking longer to extend offers post-recession as they assess whether a candidate really is the best fit for the job and their company culture.”

Internationally, the survey found that of the top ten countries with the highest GDPs, those most negatively impacted by bad hires include Russia (88 percent), Brazil (87 percent), China (87 percent), and India (84 percent). Even countries least affected by bad hires, such as France, Germany, and Japan, saw impact rates at 53 percent, 58 percent, and 59 percent, respectively. Employers from Brazil, Russia, China, and India were most likely to suffer productivity and revenue decline while U.S. employers were most likely to see declines in morale and increased costs of recruitment and training.


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Joshua Bjerke, from Savannah, Georgia, focuses on articles involving the labor force, economy, and HR topics including new technology and workplace news. Joshua has a B.A. in Political Science with a Minor in International Studies and is currently pursuing his M.A. in International Security.