In research released this morning, CareerBuilder says more than half of employers in all of the world’s 10 largest economies report detrimental effects from hiring the wrong person, either in noticeable hits to productivity or revenue or in employee morale or client relations.
Sixty-six percent of U.S. employers report a bad-fit employee has had a measurable negative impact, which was conducted by Harris Interactive late last year. More than 6,000 hiring managers and human resources personnel from the countries with the 10 biggest gross domestic products were surveyed. France reported the lowest level of instances, with 53%; Russia was highest with 88%.
Among those U.S. companies struggling with the problem, 27% say a single bad hire has cost the firm more than $50,000. In China, nearly 48% of employers report similar losses. In Europe, the most expensive issues were in Germany.
“Making a wrong decision regarding a hire can have several adverse consequences across an organization,” says Matt Ferguson, CEO of CareerBuilder. “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.”
Brazil, Russia, India and China were more likely to report negative effects like lost productivity or dents in customer relations. American companies ranked high in seeing an impact on employee morale and the cost of recruiting and training a new worker. The Eurozone countries ranked lower in most categories of detrimental effects, which CareerBuilder attributed to slower hiring in those markets.
Register or login for access to this item and much more
All Employee Benefit News content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access