Every business leader understands the negative consequences of a bad hire. Hiring someone who isn't a fit for your team can disrupt team morale, lead to decreased productivity, have a negative impact on customer service and, as a result, cause profitability to take a hit.
According to a 2015 Leadership IQ study, 46 percent of hires are considered failures by the time they reach the 18-month mark, meaning all businesses constantly have to face the repercussions of poor hires. But the most successful businesses have what it takes to ensure a bad hire doesn't derail their teams. Here are three tips to help your team bounce back and stay productive in the event of a bad hire:
1. Have a continuous hiring strategy in place.
The costs of a bad hire add up quickly--including training and salary costs, as well as costs associated with other employees picking up a bad employee's slack. According to data from the U.S. Department of Labor, the costs of a bad hire can add up to 30 percent of the hire's annual salary.
In some cases, you might keep a bad hire on board to stay fully staffed--only to finally hire someone when it's gotten out of hand. Doing so can have a negative impact on your team's productivity and profitability.
To avoid keeping bad hires on your team for long, have a strategy in place to continuously hire--especially for roles you know will open up throughout the year. It'll help you quickly replace bad hires and build a network of talent to staff up as your team grows.
Keep jobs posted on your career site--even if you don't have an immediate opening. If a strong candidate comes along, you can offer an informational interview. If the interview goes well, you might even decide to hire the candidate before you have an immediate need. If not, you'll have a pool of talent to tap into when you need to make an urgent hire--like when you let go of a bad hire or suddenly experience business growth.
2. Rethink your hiring process.
If you notice your team has made several bad hires in recent memory, it's likely time to rethink your hiring process. Many businesses make the mistake of hiring employees too quickly to fill open roles. Hiring the right employee is much more important than simply filling a seat.
Rather than simply manually reviewing applicants and completing one or two interviews, your hiring process should include several verification steps to determine whether or not each candidate is truly a fit for your team. For example, you can use prescreen surveys to gauge whether or not candidates meet the requirements for the role before you even move forward with an interview.
Other verification steps, such as reference and background checks, can help your team feel even more confident in the candidate before extending an offer. That'll ultimately decrease your risk of making another bad hire.
3. Check in with your team.
Check in with your employees following a bad hire. Individual team members often end up getting overworked due to a bad hire who isn't performing, or even mistreated by a bad hire who isn't a culture fit for your team.
Ask your managers to reach out to employees about any challenges they've faced with the bad hire. Collect feedback about what the company can do to ensure the rest of the team continues to be excited to do great work. Doing so will make everyone feel valued and motivated.
Bad hires pose a risk for throwing any team off track. With the right strategy in place, you can ensure your team remains productive.