When calculating the above, most researchers accept that it isn’t simply the salary and benefits of a bad hire they need to measure, painful though this is. They reason, quite correctly, that the “real” cost also includes factors such as reduced team productivity and missed client opportunities. The truth however, is the cost is much, much greater than that.

A bad hire has a profoundly negative effect on co-workers’ productivity and morale and can change their perception of the company “How could they have employed this person?” the rest of the workforce will say to each other, “How could they have got it so wrong?” is what they actually mean.

The biggest cost of a bad hire – by far, is the psychological impact on the leadership of the company – I should know I went through it myself with my 2 co-directors and close friends when we ran our own financial services brokerage between 2003 and 2007. “How did we employ this person?” we quite rightly asked ourselves. Then we had the subsequent cost in management time, coming to the conclusion that we had to get this person out of the company, then finally starting the process to actually do it. This, in turn engenders stress both at work and at home – the conversations with your spouse about that person, about how they drive you absolutely crazy, and about how you can’t believe that you ever offered them a job in the first place? The frustration that “you knew deep down” that you were making a mistake, but made the offer anyway and are now living with the consequences.

What a waste of money! More recruitment and training costs are incurred again – but what are you doing differently? It’s all the more reason to be absolutely sure that you’re making the right choices when it comes to adding new staff. Ask yourself the following – are you using a consistent hiring process to ensure that every open role is afforded the same level of care and attention? Do you have a method of filtering CV’s or applications? Do your staff know the right approach during interviews? Are you conducting thorough reference checks?

You may feel you have learned some lessons about people, one being that clients, customers and colleagues can be upset not only by a bad hire’s incompetence but by their attitude – again though, the same question needs to be asked – what are you doing differently to find out whether a person shares your company’s values?

The answer is simple – use the Axia Profile to underpin your recruitment process. New to the UK and based on Nobel Prize nominated research, this quick, online solution is specifically designed to help employers recruit the right people.

Tags: AxiaMetrics, axiology, linkedin, People assessment, Personality Tests, Psychometric tests, Recruitment tests