The average cost an organization spends on a bad hire is $15,000. This includes the time and expenses spent with onboarding, training, recruitment, performance, productivity, customer service, and possible increased risk of legal fees.  

A bad hire is not only expensive, but it can cause your company to lose current clients or potential clients and cause discontent among your employees. It is important to know the signs of a potential bad hire, and how to avoid them.  

The warning signs of a bad hire  

  • They have a negative attitude from the beginning.  
  • They do not have the skills they talked about having during the interview process. 
  • They are constantly late. 
  • They complain about their tasks and goals. 
  • They do not learn from past mistakes.
  • They are not willing to adapt to change.
  • They only want to do the bare minimum. 
  • They underperform and do not complete projects or tasks. 
  • Customers complain about the employee and their bad attitude or inability. to help solve problems. 
  • They do not take ownership of their mistakes.  

Some employers may overlook these warning signs because they think their new hires just need to adjust to the new position they have been given, and that may be true. However, when new employees start to become negative and not motivated to reach their goals, it is best to talk to them and come up with a plan for them to improve. It is always better to talk to your employees sooner than later if they are causing you some concerns.  

When you decide to address your new hire, clearly state your expectations to them and what will happen if those expectations are not met. Document these conversations in writing for the employee’s file. 

How to avoid bad hires in the future 

Almost every employer or manager has hired someone who ended up being a bad fit for their company. Hiring someone who is a bad fit can disrupt productivity in the workplace and damage your business reputation.  

It is important to know how to avoid bad hires so that you do not repeat the same mistakes when hiring 

  1. Take your time: It can be easy to rush into a decision when you are looking to fill in a role; however, it will be more beneficial to your company to take your time. Thoroughly look through resumes and think about the important skills that would be transferable from other roles. 
  2. Conduct multiple interviews: It can be beneficial to let multiple leaders (including yourself) interview top candidates. This allows some of your trusted leaders to also have a say in who would make a good fit for the position and gives more opportunities to spot possible red flags.  
  3. Have set expectations: Know what your ideal candidate should have in terms of experience, personality, attitude, and skills. If a candidate does not have the qualities you are looking for, then it is best to continue looking.  
  4. Be competitive: If you find a candidate that fits all of the expectations, be prepared to make a competitive offer. Quality talent is in high demand, so you must be competitive to get top employees.  

During the hiring process it is important for leaders to know exactly what they are looking for. This will help reduce the chances of having a bad hire. Leaders need to take their time and lean on other managers to help them make the best hiring decision for the company.