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 it’s costly from that standpoint, and if they’ve alienated a client, or two, or three, that adds up, too.
A study by Robert Half says — yes, those costs are important — they aren’t the biggest cost to a company. In fact, the study of CFOs asked to comment on the problem said financial cost isn’t at the top of their list and isn’t the biggest risk of a new hire.
What’s impressive about financial not being at the top, is a bad hire ending up costing 30% of that person’s annual salary. We know 30% of low to high five-figures or even six is a lot.
No. Robert Half’s 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