CHICAGO and ATLANTA, Nov. 17,
2016 /PRNewswire/ -- Ever wonder why companies often take so
long in deciding which candidate to hire for a particular position?
Consider this: the cost of bringing on the wrong person can run
into the thousands and thousands of dollars. According to a new
CareerBuilder survey, 75 percent of employers said they have hired
the wrong person for a position, and of those who had a bad hire
affect their business in the last year, one bad hire costs them
nearly $17,000 on average. And while
most employers (72 percent) background check every new employee
before they are hired, more than 1 in 4 (28 percent) do not.
"If an employee isn't well-suited for the job or has a bad
attitude, the time they spend not working could significantly
impact your bottom line. That's why it's so important to make sure
qualifications are substantiated," said Ben
Goldberg, CEO of Aurico, a CareerBuilder company. "It's a
hard cost to quantify, but it adds up when you consider the loss of
employee morale, the additional supervision that employee needs,
productivity loss for the organization, revenue that's not being
generated and client relationships that could be turning sour as a
result of bad impressions."
The national study was conducted online by Harris Poll on behalf
of CareerBuilder from August 11 to September
7, 2016 and included a sample of 2,379 hiring managers and
human resources professionals across industries and company sizes
in the private sector.
The majority of employers (72 percent) background check every
new employee before they're hired, but more than a quarter (28
percent) don't at all. Similarly, while many (55 percent) drug test
employees, only one in five (20 percent) continue to once an
employee has been hired.
"As you are hiring candidates who represent you and act as an
extension of your company, accurate and thorough background checks
are vital. Especially because the cost of replacing an
experienced worker who doesn't work out can cost a decent amount of
that individual's salary," Goldberg said.
Those who do background check are analyzing these aspects:
- Criminal background: 82 percent
- Confirm employment: 62 percent
- Confirm identity: 60 percent
- Confirm education: 50 percent
- Check for illegal drug use: 44 percent
- Check licensing: 38 percent
- Credit check: 29 percent
The Cost of a Bad Hire
Among those who had a bad
hire, 37 percent said it was because the candidate lied about
his/her qualifications. The price of a bad hire like this adds up
in a variety of ways. The most common ways employers say a bad hire
affected their business in the last year are:
- Less productivity: 36 percent
- Compromised quality of work: 33 percent
- Affected employee morale negatively: 31 percent
- Lost time to recruit and train another worker: 30 percent
- Cost to recruit and train another worker: 30 percent
- Employee's managers or coworkers had to spend excessive time
assisting bad hire: 29 percent
Of those who have had a bad hire affect their business in the
last year, the average cost of a bad hire varies by company
size:
- 500 or less employees: $11,000
- More than 500 employees: $22,000
- More than 1,000 employees: $24,000
When classifying what makes someone a bad hire, employers
reported several behavioral and performance-related issues:
- The employee didn't produce the proper quality of work: 58
percent
- The employee had a negative attitude: 52 percent
- The employee didn't work well with other employees: 51
percent
- The employee's skills did not match what they claimed to be
able to do when hired: 49 percent
- The employee had immediate attendance problems: 45 percent
- Customers complained about the employee: 38 percent
A fifth of employers who have made a bad hire (20 percent) say
they know within the first week of hiring a candidate whether or
not they made a mistake, and more than half (53 percent) know
within the first three weeks.
A New CareerBuilder Partnership
Earlier this year
CareerBuilder acquired Aurico, a leading provider of background
screening and drug testing serving U.S. and international
clients.
Aurico is a recognized leader in customer satisfaction among
screening providers. Over the last 25 years, Aurico has delivered
comprehensive background screening and drug-testing services,
building a strong reputation for exceptional service, quality and
screening automation.
Focused on enhancing efficiencies during the onboarding process
and providing a good candidate experience, Aurico's solutions help
companies meet compliance standards and feel more confident about
their hiring choices.
Today Aurico announced it has been named one of the nation's top
13 employment screening providers on HRO (Human
Resource Outsourcing) Today magazine's 2016
Baker's Dozen list. This recognition marks the fifth appearance on
the list for Aurico.
Survey Methodology
The survey was conducted online
within the U.S. by Harris Poll on behalf of CareerBuilder among
2,379 hiring and human resource managers ages 18 and over (employed
full-time, not self-employed, non-government) between August 11 and September 7, 2016.
Percentages for some questions are based on a subset, based on
their responses to certain questions. With a pure probability
sample of 2,379, one could say with a 95 percent probability that
the overall results have a sampling error of +/- 2.01 percentage
points. Sampling error for data from sub-samples is higher and
varies.
About CareerBuilder®
CareerBuilder is the only
end-to-end human capital management company covering the entire
candidate lifecycle and employee lifecycle for businesses. As the
global leader in its industry, CareerBuilder specializes in
cutting-edge HR software as a service to help companies with every
step of talent acquisition and management. CareerBuilder works with
top employers across industries, providing solutions for talent and
labor market analytics, job distribution, candidate sourcing,
tracking, onboarding, HRIS, benefits administration and
compliance. It also operates leading job sites around the
world. Owned by TEGNA Inc. (NYSE:TGNA), Tribune Media (NYSE:TRCO)
and McClatchy (NYSE:MNI), CareerBuilder and its subsidiaries
operate in the United States,
Europe, South America, Canada and Asia. For more information, visit
www.careerbuilder.com.
Media Contact
Ladan Nikravan
312.698.0538 x70538
ladan.nikravan@careerbuilder.com
http://www.twitter.com/CareerBuilderPR
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SOURCE CareerBuilder