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Hiring Advice

4 Costs of a Bad Hire

Any experienced professional can recall the headaches and miseries that come with bringing in an ill-fitting team member. Whether it’s a bad attitude, poor technical match, or someone who doesn’t fit into the company culture, a bad hire is a drag on even the highest-performing teams.  

This extends to a company’s bottom line. A bad hire hits your team financially on multiple levels.

How Can You Avoid These Results of a Bad Hire?

1. Hiring costs

Bringing in a new team member involves a wide range of factors and efforts, and they all cost your company money. These costs will continue to increase going into the future, given the increasing challenges in finding quality candidates.  

A bad hire means you’ve wasted this investment. Even worse, you’ve doubled it because you need to spend the money all over again to find a replacement. 

2. Employment costs

A bad hire costs money every minute they’re on the job. This includes:  

  • Salary 
  • Benefit costs 
  • Taxes 
  • Workman’s comp 
  • And all other expenses related to employment.  

It’s a large investment to make on someone who brought you little or nothing in return.

3. Costs to time and energy

Unproductive and negative employees create headaches for their teams. The other team members wind up having to do extra work to make up for lost productivity, bad decisions, and embarrassing service missteps.  

This means you’ve spent energy, and money, trying to hold things together, not moving forward. The issues will snowball as time goes on, creating more and more issues. In the worst-case scenarios, it can result in anything from missed deadlines to recalls, expensive field fixes, and canceled contracts.

4. Lost future business

In competitive fields, such as aerospace, your reputation can make the difference between winning and losing key business. If a bad hire, or hires, have caused your company to drop the ball, it can reduce your standing in the industry. It creates an opening your competitors will be more than happy to take advantage of. 

Success in aerospace employment hinges on your ability to weed out potential bad hires long before they’ve taken up your team’s time. Recruiting and hiring teams need to work together to identify the qualities of good and bad hires. This will create clear standards to make sure you spend your valuable time on candidates who bring something positive to the table. 

Learn more

The Structures Company is your best ally in making that happen. Our expertise in aerospace recruiting means we know what candidates are a solid technical match. Our ability to build relationships means we know how to match the right personalities to your company culture.  

Contact us to discuss your recruiting challenges and how we can help you solve them. 

How Employers Can Contain Costs with Staffing

What business isn’t looking to control expenses? Staffing firms offer many effective solutions for reducing overhead, managing operating costs and improving organizational performance. Used effectively, staffing services can save you more than they cost.

Here are some key ways you can use staffing to reduce costs in your organization:

Convert fixed expenses to variable.

Develop a plan to staff your business strategically. Minimize the number of permanent employees on your staff to the level needed to sustain your core volume of work. Proactively plan to bring in extra help when it’s needed.

Bring in expertise on an as-needed basis.

Temporaries can deliver the experience and skills you need without impacting fixed expenses. As an added benefit, temporary “experts” are often less expensive than consultants.

Lower benefits costs.

Limit benefits expense by using temporary employees. Most temporary employees receive only limited benefits which are paid by the temporary staffing service. Companies with extensive benefits programs may not want to offer full benefits to all employees. Using a temporary staffing, payrolling or employee leasing service may make it possible to offer more limited and cost effective benefits programs to these employees.

Eliminate overtime.

Use temporary employees to reduce the amount of overtime worked by your permanent staff.

Reduce training costs.

Reduce training costs and learning curves by bringing in temporary employees who are trained and have experience using the skills you need.

Streamline recruiting.

Use a permanent placement service to eliminate the costs and time involvement associated with advertising, screening resumes, interviewing, testing and reference checking applicants.

Lower payroll expenses.

Administration Eliminate the costs associated with processing and administering your company’s payroll and benefits by using a payroll or employee leasing service.

Reduce unemployment claims.

Using a temporary in place of a short-term employee prevents an unemployment claim from affecting the client company.  Legally, payrolled or leased employees work for the company providing the payrolling or employee leasing service. All claims affect the staffing service’s unemployment rating, not yours.

Eliminate operating inefficiencies.

Inefficient functions can be outsourced to services that can perform the work more effectively. The outsourcing service should be able to reduce expenses and improve performance while allowing your company to focus on its core competencies.

Develop a Strategic Staffing Plan for Your Organization

At Carolina Recruitment, we help clients evaluate their current workforce and develop a strategic staffing model to help lower overall employment costs and access the skilled talent they need.  Discover more about Carolina Recruitment.

Assessment Tools for Making Better Hires

Having the right tools at your disposal can make hiring a lot easier—and a lot more successful.  Here is a quick overview of different assessments tools you can use, beyond the basic job interview:
Qualifications Screens – Simple questionnaires determine if an applicant has the minimum requirements to perform a job (availability, minimum age, years of related experience, etc.).

Job Simulations / Work-Sample Tests – These require the candidate to actually demonstrate or perform job tasks. Simulations may be conducted: as written tests, as role-playing exercises, on a computer, or even in real-life conditions. By design, they generally show a high degree of job-relatedness.

General Abilities Tests – Generally used for entry-level jobs or for applicants without advanced degrees. They measure broad mental abilities such as reasoning, quantitative, verbal, and spatial abilities.

Specific Ability Tests – Test for distinct mental and physical abilities, such as typing speed, reading comprehension, strength, and mechanical aptitude.

Knowledge and Skills Tests – Determine how much an individual knows about a very specific, advanced subject area such as software programming or mortgage laws. Knowledge tests are similar to specific ability assessments, but examine more sophisticated skills.
Talent Measures / Personality Inventories – Measure a candidate’s natural personal characteristics like: leadership and management skills; problem-solving ability; motivation; self-confidence; and communication styles.

Culture Fit Inventories – Assess how well an applicant will fit into your corporate culture and work environment, to help ensure organizational commitment.
Background Investigations – Gather information from outside sources, such as former employers and police records. Employment, criminal record, and reference checks all help employers avoid potentially catastrophic hires.

Drug Screens – Use a physical specimen from the candidate (hair, urine, etc.) to determine past drug or alcohol use. Employers use drug screens to prevent industrial accidents, work-related injuries, and excessive absenteeism.

If you would like more information about any of the above assessments please contact us today.