6 Reasons Companies Made Bad Hires in 2012

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A recent study by CareerBuilder reveals how frequently companies choose the wrong candidate when filling job openings and how costly it can be. According to an online survey of 2,494 hiring managers and human resources professionals, 69 percent of their companies experienced costly bad hires in 2012.

Just one bad hire can be highly detrimental to a company. Forty one percent of survey respondents cited the high costs associated with making a bad hire exceeded $25,000, while 24 percent cited costs surpassing $50,000.

While survey respondents were able to identify the high costs of making a bad hire, they were also able to identify six causes for making bad hires including:

  1. Needed to fill the job quickly (43 percent)
  2. Insufficient talent intelligence (22 percent)
  3. Sourcing techniques need to be adjusted per open position (13 percent)
  4. Fewer recruiters to help review applications (10 percent)
  5. Failure to check references (9 percent)
  6. Lack of strong employment brand (8 percent)

Surprisingly, some of the most cited causes leading to bad hires — rushing to hire, insufficient talent intelligence, and lack of references checks — could be prevented with documented workforce screening policies and effective pre-employment screening programs.

Discover other negative effects of a bad hire and tips to avoid making one by reading: What Bad Hires Really Cost Companies

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