YOUR HIRING MAY BE DESTROYING YOUR BUSINESS:
The Harvard Business Review points out that as much as 80% of employee turnover is due to bad hiring decisions.
The Labor Department estimates it can cost on average one-third of a new hire’s annual salary to replace him or her and that those costs increase the higher up in the organization the turnover occurs. In some cases, it can total in the millions of dollars if that person is the CEO.
According to a study by the Society for Human Resources Management (SHRM), it could cost up to five times a bad hire’s annual salary.
A University of Michigan study on predictors of job performance found that the “typical” interview increased the likelihood of choosing the best candidate by less than 2%.
A study by Wanted Analytics found that on average, job ads remain online for 43 days – or just over 6 weeks. However, many locations will experience a longer time-to-fill and more difficult recruiting conditions, due to the local demand and available talent supply.