Client Resources

The Hard Hitting Numbers Behind Your Poor Hiring Decisions

One of the most costly, time-consuming mistakes you can make in the supply chain industry is hiring the wrong person for a job.

The U.S. Department of Labor estimates that the average cost of a bad hire equals about 30 percent of the individual’s yearly salary. One bad hire with an annual income of $50,000 can equal a $15,000 loss for the employer. And that doesn’t even take into consideration the impact it can have on productivity and team morale. Or on how much time you’ll spend training someone who has no future with the company.

What can you do if you’ve already hired someone you wish you hadn’t?

  • Trust Your Instincts. If your gut feeling is telling you this person isn’t working out, you’re probably right. Some people believe you should wait a certain amount of time before making this decision—probably because it’s an expensive one—but you should know within three to six months, if not sooner, that you’ve made a bad choice.
  • Ensure That You’ll Have Buy-In. Correcting a hiring mistake can be difficult. Every organization has its own complexities, egos and rules. Sometimes it takes a lot of effort to convince other members of the hiring team that a mistake was made, especially if you are the only person who sees this person’s performance on a daily basis.
  • Cut Your Losses. As soon as you realize the hiring error, cut the person loose. You may think you can turn the hiring mistake around, given enough time, but it’s rare that such an experiment succeeds. Face the reality, understand that the fault lies on both sides, and allow both the employee and your company to move on.

What can you do to improve your chances of hiring the right candidates?

  • Be Clear About What You Want. Don’t give an old job description to your hiring manager or recruiter. Think about your needs and about not only the supply chain skills you’d like to add to your team but the type of personality the person should have.
  • Look Beyond The Resume. Evaluating a candidate’s skill set includes more than just functional supply chain abilities – you should also try to assess for adequate communication skills, leadership potential and how well he works in a collaborative environment.
  • Woo Your Top Choices. In the supply chain industry, people in high demand may have multiple job offers, or they may already be working and not really planning to switch. Show them why they should choose your organization over their current job or over a competitor. Promote the benefits of working at your organization, and offer a highly competitive compensation package.

The most important asset any supply chain organization has is its people. If you need help replacing a bad hire, or if you want great hires from the start, call ZDA Supply Chain Recruiting. We can help you find the people that will fit your organization.

Share ths Blog Posting: