More than a Paycheck: The Surprising Cost of a Mishire
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The secret to your business’ success is also your greatest challenge: hiring the right people. A great team is a beautiful thing. The energy, synergy, and creativity of a great team can propel your business to the next level.
However, drop one wrong person into the mix – a mishire – and you’ve poisoned the well. As you’ll see, the cost of a mishire is staggering: up to 15 times their salary!
Let’s first look at the hidden costs of a mishire.
Damaged Morale
Fans of any team sport understand the importance of team dynamics. The right mix of players produces something greater than the sum of their individual parts. And yet, how many times have you seen talented teams wrecked by the new acquisition, that one player who just doesn’t? It happens all the time. And it’s no different in the workplace.
Morale suffers. If you’re the one who helped hire them, YOUR reputation suffers. A negative cycle of poor performance and apathy kicks in. And it’s contagious. People begin checking out mentally and, if nothing is done to fix the problem, your star players start looking for other teams.
Declining Productivity
Most new employees are eager to make a good impression, doubling down on their efforts to ensure they deliver a focused, effective work performance. Mishires either can’t or don’t care to. Either way, it’s bad news for you.
Maybe they lack the soft skills to communicate well with colleagues or clients. Maybe they have a poor work ethic. Maybe their only real skill is interviewing well! And even if the mishire has a decent attitude, their poor productivity soon becomes the team’s problem, as others are forced to step up and pull more weight. All productivity suffers.
User Dissatisfaction
“I will never do business with this company again!!!”
That’s the online comment people will see about your company. Every customer is now armed with the power to publicly rip into your reputation. Studies show that customers who have had a bad experience with a brand are 50% more likely to share their experience with others than those who’ve had a positive experience. That means a mishire’s mistakes can reverberate long after you think the issue is resolved, costing your business revenue and priceless credibility.
Compromised Bottom Line
While you may not feel it right away, the ultimate outcome of a mishire will be felt by your books. The challenges created by mishires will directly impact your bottom line.
In fact, our case study shows that hiring the wrong person can cost a company up to 15 times that person’s annual salary.
If that sounds like an inflated number, consider all of the areas that are potentially affected by a mishire.
With all of these financial touchpoints at risk, a mishire can feel less like an innocent misjudgment and more like a ticking time bomb.
What Can You Do To Avoid A Mishire?
MATCH: A Systematic, Sane Process for Hiring the Right Person Every Time
MATCH is a system of best practices that virtually guarantees you hiring success. It’s based on more than 20 years of data collection accumulated over thousands of hires at Accountants One.
The MATCH process starts with the mission of your organization and builds a job overview based on carefully prioritized business objectives. Further, the process codifies your culture and the competencies necessary for a successful hire, and then uses interviewing and reference techniques to move through a candidate pool in a systematic way.
Your approach becomes consistent and coordinated. Everyone involved is on the same page. Interviews complement and build on one another. Guesswork is eliminated. Decision-making is sharp, methodical, and clear. With this strategic process, MATCH virtually guarantees the “right” hire every time.
If you’re looking for a true match, we are here to help you avoid the costly consequences of mishiring.
Contact Accountants One today to connect with top accounting and finance talent in your area!
