The high price of a low performer

May 31, 2018

An employee who can’t keep up with work demands affects the bottom line more than some may think, based on findings of a poll sponsored by staffing firm Robert Half and released on May 15.

Asked by researchers to estimate just how much time is spent coaching underperforming employees, 2,200 CFOs nationwide estimated 26% of a 40-hour work week—or more than 10 hours.  What’s more, fully 91% of finance executives acknowledged that such hiring mistakes negatively affect team morale.

“A bad hire is tremendously expensive for a company,” said Paul McDonald, senior executive director for Robert Half. “The time and money managers spend on recruitment and training is lost, and they also have to fix underperformers’ mistakes and deal with their [fallout] on staff morale and productivity.”

McDonald added, “A bad hire signals that your hiring process may be flawed. It could be that you are not putting sufficient weight on soft skills or are overemphasizing qualities that aren’t crucial to the role.”

The company advises HR to “hire for fit.” New hires should have the technical chops to do the job well, but they also should fit in well within your team and corporate culture.

Other tips include offering above-average compensation. Stellar candidates know what they are worth, so pay is not the place to skimp.

Finally, don’t forget to check those references—and carefully. Resume fraud is on the rise.

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