A new survey of employers released today by IrishJobs.ie reveals the costly repercussions of a bad hire, including damaged productivity, workplace conflict and a loss of revenue. IrishJobs.ie analysed the data collected from 126 employers in response to a survey conducted over a three-week period in May 2018. 
 
The survey shows that businesses that made a bad hire experienced a loss of revenue (21%) as well as reduced productivity (86%), poor team morale (56%), compromised work quality (48%) and workplace conflict (33%).
 
Furthermore, one-third (33%) of employers reported spending over €10,000 to rectify their mistake. Solutions cited by employers include investment in training or professional development (17%) or movement to a different department (8%); however, 47% of employers have decided to let the person go. 
 
The report indicates that a common cause of bad hires is relying on referrals from friends or colleagues - 22% of employers cited this as the source of their mistake. Furthermore, 27% of employers reported that they made their hiring decision due to a lack of more suited candidates.
 
Commenting on the research, General Manager of IrishJobs.ie, Orla Moran said, "Understandably, people place a high value on the recommendation of someone they respect. But, unless they’ve worked closely with the person in question, they won’t have great insight into whether they fit the culture of your organisation."

She added, "Often, the signs of a bad hire aren’t evident outside of the work environment. While referrals can play a significant part in the hiring staff, following a diligent recruitment process that opens the door to all qualified candidates is crucially important to find the right fit for the role."

Source: www.businessworld.ie