New hires can cost companies up to $240,000, according to branding agency Link Humans. That cost increases when the employee doesn’t work out. Research and analyst firm Brandon Hall Group (BHG) says the following costs add up when replacing an employee:
- advertising fees and staff time
- relocation and training fees for the replacement
- interrupted project costs
- lost customers
- weakened brand image
- litigation fees
Recruiters can help avoid bad hires by encouraging clients to spend time finding the best candidates. Instead of rushing to fill a position, they should be thoughtful about who can best fulfil the needs of the job and who is a good culture fit for the company. It’ll save them in the long run.