Bad Hiring Decisions: Don’t become another statistic

By Adam Robinson,
December 17, 2012

Remember that blog post we wrote a few weeks ago about the cost of a bad hire? You know, the one that talked about how making one bad hiring decision could end up costing the company $50,000. I hate to be the bearer of bad news, but bringing the wrong candidate onto the team can cost a lot more than just money. 

CareerBuilder recently conducted a study on the cost of making a bad hiring decision. After interviewing 2,494 hiring managers, they compiled the data into various categories focusing on what made Candidate X a bad hire and the costs associated with each bad hire. 

The findings aren’t surprising, but it serves as a reminder that hiring managers shouldn’t rely on their instincts alone. So rather than dwelling on the risks and costs of a making a bad hire, learn from other’s mistakes. Use that knowledge to ensure you only make the best hiring decisions in 2013!

After interviewing nearly 2,500 hiring mangers, CareerBuilder found that the following are the greatest effects of a bad hire:

  • Less productivity – 39%

  • Decreased morale – 33%

  • Negative impact on clients – 19%

  • Fewer sales – 11%

  • Increased cost to find a replacement – 35%

  • Less time to train the replacement – 39%

But what was wrong with these hires? What made them so bad? CareerBuilder concluded the most common reasons are behavioral and performance-related issues. The following are the primary complants from those hiring managers interviewed:

  • Lack of quality work production – 67%

  • Unable to work well with other employees – 60%

  • Negative attitude – 59%

  • Attendance problems – 54%

  • Customer complaints – 44%

Hiring managers do take some responsibility for these bad hires though. Of those surveyed, two-in-five hiring managers attributed a bad hire to the pressure to fill a job opening. 

  • Needed to fill the position quickly – 43%

  • Insufficient talent intelligence – 22%

  • Did not check references – 9%

The risks of a bad hire are huge, but the benefits of a good hire are greater. And the good news is, making a great hire is easier than making a bad hire. Hireology’s SmartRank survey, interview guides and pre-employment skills testing were developed to support hiring managers. With these tools, there’s no need to worry about making a bad hire!


Take even more steps to ensure you don’t become another statistic; read our guide on the eight most common interviewing mistakes.

About the Author

Adam co-founded Hireology with the mission to help growing companies make better hiring decisions through data and better technology. Adam is passionate about entrepreneurship, donating time to a number of organizations that support the entrepreneurial cause. Adam completed his undergraduate study at the University of Illinois at Urbana-Champaign, and received his MBA from DePaul University in Chicago, IL.

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