Finding a good team of employees can be hard and take a long time, but it hurts your business more if you hire the wrong person. The true cost of a bad hire goes beyond wasted wages. Read how much hiring the wrong person really costs.

Finding a good team of employees can be hard and take a long time, but it hurts your business more if you hire the wrong person. The true cost of a bad hire goes beyond wasted wages. Read how much hiring the wrong person really costs.

 

What makes a hire the wrong decision?

Whether you want to hire a seasonal worker or add a permanent team member to your small business, there are many ways that a candidate could be a wrong fit for your company and team. If this person can’t work well with your team, doesn’t do their job well, or isn’t trustworthy, you’ll waste money from wages, training, lost productivity, and potentially even more.

Team Morale and Productivity Suffers

One of the most common effects of a bad hire is what happens to your team. If there is tension between coworkers because someone isn’t pulling their weight or not meshing well with the team dynamic, everyone in a small business can feel it. Employees who aren’t happy at work are less productive, make more mistakes, and may quit.

Consider incorporating a casual meeting other employees – such as a team lunch or a chat during a slow period – into your hiring process. Ask your employees if they think the candidate would work well with everyone. They will be working even more closely with this person than you will.

All these things reduce your business’ profitability, and even more costly mistakes or stealing can hurt your business even more.

You Could Lose Customers and Cash

If you’re in a rush to find someone to fill an open position, you might be tempted to skip over calling references and validating qualifications. Just because someone sounds amazing on their resume and can sweet talk through an interview doesn’t mean they are the perfect candidate. Do your due diligence to make sure their education, skills, certifications, references, background check, and job history are accurate.

Hiring someone who isn’t truly qualified to do their job can make mistakes that could lose you customers, your business’ reputation, or even cause physical damage to goods or equipment. Nobody wants to suspect their employees of stealing money or products, but someone without positive references or lied on their resume is not trustworthy.

How can you pick the right person?

We’ve written this handy checklist of a few key things to consider when hiring to in order to help you pick the right candidate. Taking the time to go through applications thoroughly will benefit your business and potentially save you money.

 

For information about Opportunity Fund’s small business loans, please contact us at 866-299-8173 or loans@opportunityfund.org.  For questions about your existing loan or other customer service questions, please contact us at 866-299-8173 or sbhelp@opportunityfund.org.


Opportunity Fund is tackling economic inequality so that hard work and perseverance means a shot at getting ahead, not just struggling to get by. Our programs are supported by a community of donors and investors whose contributions help to fund small businesses, support college students, and build stronger families and vibrant neighborhoods. Since 1994, the team has deployed $600 million and helped 20,000 families earn, save and invest in their own futures. Opportunity Fund has earned a 4-star rating from Charity Navigator, America’s largest independent charity evaluator, for our commitment to accountability and transparency.

Visit us online at http://opportunityfundloan.org and follow us on Facebook and Twitter

Opportunity Fund. Working Capital for Working People. opportunityfund.org