After a brief hiatus where our blogs focused on Building Your A-Team in 2018, we are back to finish off a series on candidate dishonesty. Blog #1 in this series suggested that 40% of candidates lie to get jobs and Blog #2 showed the various lies that are told. This blog presents our research on the costs of mis-hires. We’ve helped hundreds of companies calculate their costs of mis-hires across various jobs, and in all of the thousands of Topgrading Workshops we’ve conducted, attendees fill out our Cost of Mis-Hire Calculator. This could be a 20-page white paper but here’s the bottom line(s);
COST OF MIS-HIRES
Clerk: 1 x Salary
Sales Rep: 5 x Salary (based on extensive research for Topgrading for Sales)
Supervisor: 8 x Salary
Mid-Manager: 10 x Salary
Executive: 15 x Salary
CEO: 27 x Salary (Cover story of CEO Magazine)
Wow – the numbers seem high, right? Then take a look at the Topgrading Cost of Mis-Hires Calculator. Take 10 minutes – think of one of your mis-hires, fill in your estimated costs, and …. Wow!
And note at the bottom a very interesting question: how many HOURS did the mis-hire cost you and others? That number always exceeds 200 hours for Sales Rep and above.
So what’s the point: you owe it to yourself to use the best practices hiring because a) 40% candidates lie, and you’ve hired some of them, and b) the costs of mis-hires in money and wasted time are huge.