The Cost Of Making A Bad Construction Hire

Posted by Design & Construct on 05-Dec-2014 09:00:28

In Construction

By most accounts, a bad hire can be a very costly and off-putting mistake to make.

A survey conducted by The Australian showed that a bad hire would cost you two and a half times the employee's salary. This figure only increases for higher level positions.

In addition to monetary costs, there are a variety of other "unseen" costs that make bad hires a difficult territory to navigate. Consider the following.

 

Recruitment

If you need to replace a bad hire, the cost of finding another candidate can be rather high.

Even if you aren't investing a lot of money into ads or print materials, there is still a significant time cost associated with going through resumes and interviewing new prospective employees.

If you take the time to find the right people upfront, you won't have to put additional resources towards re-hiring later.

Training

New employees need to be supervised and trained. It can take time to get them up to speed on the tasks that you need them to execute.

If you had taken the time to screen the candidate beforehand, you would not have to think about re-hiring and training a new worker to do the work the under-performing employee either did not do or did not do well.

In other words, you end up having to train for the same position twice.

Team Morale

A bad hire could have a negative impact on your team's overall morale and productivity.

This is especially true if there is a standard of excellence that your team consistently aspires to. A bad hire can drain the positive spirit that you have worked hard to foster and develop within your organisation.

The easiest way to keep the team spirit high is by avoiding hiring mistakes.

 

Reputation

A bad hire could damage your reputation as a company, especially if they do not carry out their tasks according to instruction, code and specification.

This might result in giving up business to the competition if the work that needs to be done isn't up to standard. This might mean having to spend additional time and money on projects that should have been completed to satisfaction the first time.

A good reputation can be very difficult to re-gain. It's much easier to maintain.

 

Management and Supervision

The Cost Of Making A Bad Construction HireA good employee will carry out their assigned tasks and stop to ask questions only when necessary.

A bad hire will require a lot of supervision and micro-management. This is valuable time that you could be spending on higher level tasks.

A good employee will ultimately require less of your time and energy.

 

The Aftermath

Even after the underperforming worker has left your organisation, there are usually some consequences you will have to deal with. You will likely have to address some of the previously mentioned points.

The clean-up process might include mending client relationships, re-energising your team, the reparation of poorly executed duties, and the restoration of your company's reputation.

It's hard to estimate how much time and money the clean-up process might require.

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