Costs of Hiring the WRONG Candidate

Costs of Hiring the WRONG Candidate?

Even in a transparent recruitment process that identifies a profile needed for each position, with the necessary skills and knowledge. There is a high chance to have wrong recruitment that generates frustration among HR managers and low customer satisfaction within the company.

Costs of Hiring the WRONG Candidate?

According to an analysis conducted by Carlos Cayón-Crosswell of ETC, in the United States and Mexico, the cost of carrying out a bad contract for a company is almost ten times your monthly salary. Other sources estimate 30 to 175% of the employee’s annual gross income.

To reach this conclusion, the costs of company and training for six months, the average time of adaptation of a management executive for a new position, and considering positions of medium and high management were reviewed. However, these figures can be extrapolated to other types of jobs.

If we consider for a professional a gross salary of 75,000 USD and 20% of his salary in training, we arrive at an average cost of 10 monthly salaries.

Added to this are the intangible costs such as not having a leader coordinating the work. Projects that do not advance, demotivation within the team, and anxiety in some company executives who think they could assume that position.

Misalignment between the company and professional culture

While there are several factors that explain bad hiring, a misalignment between the company culture and the contracted professional could be one of the reasons most heard.

This, because every company has its way of working, of communicating, of positioning itself in front of the market and employees. That makes it unique and different from other companies, that is what is known as organizational culture.

Here is a high probability that the professional that is hired does not fit the culture of the organization, it will surely be a failed contract. Other important issues are a direct hierarchy, level of freedom in decision making, and life balance.

Understanding the company’s culture and translating that into a person is a challenging task, and the experience in recruitment and selection helps to minimize risks and errors in the process.

The problem of cultural adaptation began to be more recurrent a couple of years ago, evidencing the crisis of the old models of headhunting.

How to avoid the monetary cost

To avoid lousy recruitment is the hiring process and especially the recruitment process. In this sense, it is essential to see the process as an investment and not an expense, deriving this process from specialists in the “Human Analytics” field.

Emotions extraction from videos while answering questions is the core element of Visual Job Hire APP, low-cost State of the Art technology.

The new model that Visual Job Hire introduces through its APP is the analysis of a candidate’s emotions by answering questions and evaluating the possibility that the candidate is lying.

Which activates complementary validation methods. In this way, both edges are covered. And we firmly believe that this will be the future of recruiting and selection for companies worldwide.

Some relevant figures:

91% of HR managers find it difficult to identify and recruit qualified professionals.

70% have hired someone who does not meet expectations.

The rush to hire a candidate is the main reason for the failure.

80% of staff turnover is due to bad decisions in hiring.

The costs of bad hiring are directly proportional to the level of the position.

Whether due to an unsatisfactory background investigation, or the rush to fill a vacancy, the consequences of bad hiring can affect the profitability of any organization.

There are many factors that affect whether an employee is the right one for a specific position. Both the internal human resources area and a recruitment agency must take care that all the pieces fit before making a contract.

Why are mistakes made?

The most common causes of errors when hiring personnel are:

Hurry to fill a vacancy

When there is little time given to the recruiter to make the call, cite prospects, conduct interviews. Investigate background is more likely that this process is under pressure and important aspects are overlooked in the selection.

It is less expensive to take a couple of more weeks than to hurry and make a terrible mistake.

Not defining the position well and the ideal candidate to cover it

This is an error that usually makes the executive who is requesting that the job is covered, and not so much the recruiter.

If you do not define the type of person you need from your knowledge to your personality. It will be difficult for the recruiter to know what you are looking for.

Count on few candidates

You need to find the correct media outlets to release the job vacancy to be sure that a good number of candidates participate in the process.

Design a profile of the type of candidate you need and publish your vacancy in the media where you are most likely to find them.

Not correctly describe the organization and its culture

Each company has its values, work dynamics, and the environment. If you do not describe them correctly. It is likely that you will attract candidates whose personal characteristics and work styles do not fit with the organization.

Do not describe the company in an attractive way

Given the shortage of talent, it is essential that the organization has a pleasant work environment and that it offers an attractive benefits package. But it is also important to know how to work there and what your current employees say about it.

The best professionals value their talent and abilities and know that they can aspire to the best; Offer them a company that supports them to achieve the growth they want.

Avoidable costs

When you ask yourself how much it costs to fire an employee, the answer goes beyond the financial.

Making a mistake in the selection of a candidate will not only affect the company at the expense of training and compensation expenses. It will also impact the work environment by transmitting bad attitudes and negative emotions to the rest of the staff, having an impact on overall productivity.

Leave compensation of employees in some countries could represent a high cost for companies since it must include three months of their salary and 12 days per year worked.

Plus the corresponding parts to benefits such as bonuses, vacation premiums and holidays, and other benefits generated.

In addition, if unjustified dismissal is considered, the employee has the right to waive that compensation and to initiate a labor lawsuit to demand that he be reinstated in his position.

With the additional costs of paying lost wages and benefits, as well as recognition of seniority and promotions by ladder, during the period of the litigation.

If after a few weeks you realize that an employee is not the right person for the position. It would be better to make a clean cut and face the expense of compensation. That you allow to generate seniority, and its inefficiency affects the work environment.

Starting the hiring process again and the subsequent training of the selected candidate will always be better for the general productivity of the company.

Whatever your company’s turn or the level or function of the position. What you should look for in a new employee goes beyond your preparation and knowledge.

Focus on finding a person whose attitude and values coincide with the organizational culture of the company and its work dynamics.

The correlation between questions and Emotions is a crucial element to identify real people’s believes!!

While you will not solve by a candidate with the best school credentials. If do not know how to work as a team. Do not have communication skills or are not proactive and creative in finding solutions to everyday problems.


An article in Forbes magazine quotes Jörgen Sundberg, CEO of LinkHumans. Who estimates that the cost of an employee’s onboarding is USD 240,000.

Based on the size of the company, the figure can be a millionaire. Forbes and other business magazines cite Tony Hsieh, Zappos’s chief official. Who once estimated that a wrong contracting cost the company “more than USD 100 million.”

For its part, the United States Department of Labor indicates that the cost of hiring the wrong person is at least 30 percent of that employee’s first year’s income.

For a small business, investing these sums by hiring the wrong person can jeopardize your profitability and survival.

After reading these examples, you will surely want to take action in your company. For only 4.88 you can self-record a candidate job interview and Diagnose and Interpret microexpression responses to questions. Scientifically evaluate Emotions, Blink & Attention rates.


consequently to estimate the costs of recruitment in your company. First, you must know which items of the process entail a cost:

Job ads (both in newspapers and on social networks)

Training of the new employee

Time spent by the recruiter

Relocation of the new employee (optional)

Due to the recruitment is not sufficient, maybe these costs can double if you have to start the process from scratch. On top of that, hiring the wrong person has following-not-so-obvious costs:

Loss of clients,

Interruption of incomplete projects or projects

An adverse effect on team performance

Also relocation of services

A bad reputation for the company and brand

Finally, possible lawyer fees for labor litigation

Finally, to effectively manage the recruitment process and its costs. It is advisable to use a simple and inexpensive APP like Visual Job Hire in your company. If your company has an HR department, you can handle the process internally, establishing an effective and low-cost recruitment strategy.

Also, consider which option is more cost-effective for your company. After all, it’s a business matter.

About the Author

By admin / Administrator, bbp_keymaster

Follow admin
on Apr 25, 2020

Skip to toolbar