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The Bad Hire: Costly but not how you think

Posted By Administration, Tuesday, January 20, 2015

We all know hiring the wrong person can be costly. Employees even those with insurance experience do cost to train. Those without an insurance background are even more expensive.

So when one is a bust its costly from that standpoint, and if theyve alienated a client, or two, or three, that adds up, too.

A study by Robert Half says yes, those costs are important they arent the biggest cost to a company. In fact, the study of CFOs asked to comment on the problem said financial cost isnt at the top of their list and isnt the biggest risk of a new hire.

Whats impressive about financial not being at the top, is a bad hire ending up costing 30% of that persons annual salary. We know 30% of low to high five-figures or even six is a lot.

No. Robert Halfs Greg Schileppi said the biggest cost is morale. At 41% that tops the list. Loss of productivity is second at 34%. Hiring a bad fit or someone who lacks the skills needed to perform well has the potential to leave good employees with the burden of damage control, whether it be extra work or re-doing work that wasn't completed correctly the first time. The added pressure on top performers could put employers at risk of losing them, too, he said.

Oh. We almost forgot. The aforementioned financial losses came in third and a distant one at that at 19%.

 

Source link: Insurance Business America

Tags:  Employment  hiring  Insurance Content  Insurance Industry  Insurance News  The Bad Hire: Costly but not how you think  Weekly Industry News 

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