It’s a chicken or the egg question. How can you hire fast but also ensure the quality of the candidates you choose are up to par? Hiring too quickly is one of the biggest causes of a bad hire. But despite the need to find candidates to fill your open role quickly, you must ensure the right fit. If you don’t, it will cost you.
This blog will explore the issues surrounding these hiring pressures. Is there an answer that can help you hire fast—and well?
How Can You Balance Hiring Quality Candidates and Quickly?
What is the Cost of a Bad Hire?
The cost of one bad hire is at least 30% of their annual salary. If you hire an employee at $50,000 and you end up letting them go in 90 days, your cost is around $15,000. The direct cost of a bad hire include the time your HR team spends recruiting the candidate, training, termination, and then re-advertising the role. The indirect costs go higher, including taking a hit to team morale and running the risk of a bad online evaluation from the terminated employee.
One bad employee can create a ripple effect in your organization that could take years to recover from. At the same time, the candidate market is outrageously tight. There are 10 million open jobs but only around six million candidates to fill them. This makes finding the right candidate like the old needle in a haystack cliché—except this is all too real for employers today.
Should You Leave the Role Open?
Leaving the role open may cost you less in the end. A bad hire can wreck team morale. But you also must gauge how much work the team on the ground handles as you continue the search. You don’t want to burn out your existing workers. You also probably don’t want to pile on overtime costs to keep production going.
Quality versus speed is one of the biggest dilemmas faced by HR teams. Leaving the role open is risky, but the cost of even one bad hire may be worse. What can you do?
Improve the Hiring Process
Many times there is a gap between what the recruiting team understands and what the hiring team wants. If the role stays open too long and candidates aren’t the right fit, it’s time to bring both sides back to the table to understand the realities of the recruiting climate and the job the hiring manager is hoping to fill. This discussion is critical to shifting the approach of both parties in a challenging market. Hiring managers should be able to communicate their wants, needs, and priorities. Recruiting teams should share market data, such as whether the salary offered is too low or whether there’s another issue preventing a good quality candidate. Ultimately, there may be compromises on both sides. However, we don’t recommend sacrificing quality to make a faster higher.
Is There a Better Answer?
If your company struggles with the quality versus speed conundrum, you don’t have to. Maybe a better answer is to partner with an employer of record (EOR) like FoxHire. FoxHire offers our clients the technology and the human resources to handle the hiring process on your behalf. Some of our services include:
- Benefits administration
- And more
Ready to Use an EOR?
We can help you ensure the prompt hiring and processing of job candidates, then handle managing them after they’re hired. We take the labor out of labor compliance, too. If you’re struggling to find and onboard high quality job candidates quickly, we can help you lighten the load. Contact us today.