Employment Background Check Blog
bad hires

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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The HireRight Blog is provided for informational purposes only. It is not intended to be comprehensive, and is not a substitute for and should not be construed as legal advice. HireRight does not warrant any statements in the HireRight Blog. Any statutes or laws cited herein should be read in their entirety. You should direct to your own experienced legal counsel questions involving your organization's compliance with or interpretation or application of laws or regulations and any additional legal requirements that may apply.

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