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Costs of a Bad Hire Revealed | Canada

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Hiring the right person is challenging for any organization. But small businesses can have a particularly tough time with it. Eighty-six person of small business owners in Canada say they've made a bad hire in the past. Find out what the costs of such a mistake are and get tips for improving your hiring process.

Published in: Recruiting & HR
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Costs of a Bad Hire Revealed | Canada

  1. 1. Costs of a Bad Hire Revealed © 2017 Robert Half Canada Inc.
  2. 2. The Hiring Environment Has Transformed 2 © 2017 Robert Half Canada Inc. Shortage of skilled talent Condensed hiring timelines Greater competition for the best people
  3. 3. But Smaller Businesses Also Face Unique Challenges Lack of internal/HR recruiting resources Limited knowledge of the specialized employment market Limited access to the passive job seeker And most of all… limited time 3 © 2017 Robert Half Canada Inc.
  4. 4. 54% said most hiring managers have underestimated the complexity of the hiring process Small Business Owners Sound Off on Hiring Challenges 62% admitted to problems with their process 86% confessed to making a bad hire 4 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  5. 5. Hiring the Right People Can Help Drive Revenue, Expansion, Success But doing so depends on a solid process. If companies donʼt have a reliable system, costly hiring mistakes result. 5 © 2017 Robert Half Canada Inc. Reviewing hundreds of resumes Conducting multiple interviews Making a final decision and extending an offer Managing the reference check process
  6. 6. 56% reported increased stress on the team Numerous Costs of a Bad Hire On average, business owners estimated 52 hours were wasted on hiring and onboarding employees who did not work out. 19% cited decreased confidence in managers’ ability to make good hiring decisions 30% noted increased stress on the manager 6 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  7. 7. Can You Afford the Costs of a Hiring Mistake?
  8. 8. Mistakes Are Identified Fairly Quickly... but Take a Long Time to Fix Realized Bad Hiring Decision Time It Took to Let Person Go Time Passed Before a Replacement Started 44 per cent said it took less than a month to realize they made a bad hiring decision... but it took three times that time on average (16 weeks) to let the person go. Seven more weeks passed before a replacement started working, with 70 per cent of businesses putting the added workload on existing staff during this time. 27 W E E K S Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees. 8 © 2017 Robert Half Canada Inc.
  9. 9. 56 per cent of respondents said the best new hires come from referrals, including employees and recruiters. Of the businesses that use recruiters, 71 per cent said a recruiter was able to find a candidate they wouldnʼt have found on their own. 4 Ways to Improve Your Hiring Process #1 – BRANCH OUT Tip: Donʼt rely on posting jobs online as your sole hiring strategy and simply hope the right person will apply. 9 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  10. 10. 39 per cent said working with a recruiter saved the company time by doing most of the work; 26 per cent said it saved them money by finding someone quickly. 4 Ways to Improve Your Hiring Process #2 – DELEGATE Tip: Use a specialized recruiter to reduce hiring timelines and save money. 10 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  11. 11. 27 per cent of businesses working with recruiters said they do so for the service guarantee. 4 Ways to Improve Your Hiring Process #3 – GET A GUARANTEE Tip: Ask recruiting firms about their placement success rates and what they offer if a new hire doesnʼt work out. 11 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  12. 12. Along with lining up your next new hire, recruiters can help you find temporary professionals to ease the burden while roles are vacant. 4 Ways to Improve Your Hiring Process #4 – BRIDGE THE GAP Tip: The right person can alleviate the stress on existing staff, keep projects moving and be evaluated on the job for a potential full-time role. 12 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  13. 13. Robert Half can help you find talent and avoid costly hiring mistakes. Our specialized recruiters know the local hiring market and can offer a range of services: • Streamline the hiring process • Identify active and passive candidates • Promote your organization and the job opportunity • Interview candidates to evaluate hard and soft skills • Set the salary range and manage negotiations • Find temporary staff to bridge the gap during the search • Provide a service guarantee Let us manage the process so you can focus your time on the business. 13 © 2017 Robert Half Canada Inc.
  14. 14. For More Information: 1.855.853.8205 roberthalf.ca/time-to-hire

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