Wednesday • September 09, 2015
According to studies we’ve done with our clients, the average hiring mistake costs fifteen times an employee’s base salary in hard costs and productivity loss. Think about it: a single hiring blunder on a $100,000 employee can cost a company $1.5 million or more. If your business is making ten such mistakes a year, it’s pouring $15 million down the drain annually.
Nate Thompson estimates his early years of getting who wrong cost Spectra Logic as much as $100 million in value.
These who mistakes are prevalent as well. Peter Drucker and other management
gurus have long estimated that the hiring success rate of managers is a dismal 50 percent. Just think of the lost time and energy that represents, not only for you but all through the organization.
The Economist calls this “the single biggest problem in business today ”unsuccessful hiring”.