It sounds harsh, but according to the 2021 survey prepared by the American job portal CareerBuilder, 74% of employers say they have hired the wrong person for a position.

Perhaps, in order not to exacerbate the pain,companies do not calculate—even though they intuitively understand—the cost of a bad hire. Therefore, we recommend being honest about these situations and doing the math so that companies can develop new recruitment strategies.

In our experience, we estimate that the average cost of a bad hiring decision is at least 30% of the employee's annual salary. For example, consider an employee with a gross annual income of CLP 36,000,000; the direct loss to the organization could be CLP 10,800,000.

Certainly, and you may agree, that cost may be higher, as there are other expenses that are not so easy to quantify, such as:

• Person-hours and expenses associated with hiring and training new employees.
• Hours spent reviewing resumes and interviewing candidates, and fees paid to recruitment websites.
• Alternative use of the hours devoted to the search process by the Selection Area.
• Loss of productivity due to interrupted projects and lack of continuity of work in the contracting area.
• Impact on work morale and recharging for the team.
• Risk due to loss of quality in customer service and internal processes.
• Potential legal costs arising from lawsuits due to unlawful termination or claims of discrimination.

So, knowing the disadvantages, why do we continue to see poor hiring decisions? The same CareerBuilder survey provided more information about why this series of inefficient processes occurs:

Thirty-five percent of decision-makers knew that the candidate did not have all the necessary skills, but felt that they could learn quickly; 32% took a chance on a "good person"; 20% felt pressured to fill the position quickly; and 13% focused on competencies rather than attitude.

Does this post make sense to you?

If, after reading this article, you are interested in discoveringthe differentiating factors in terms of strategy, specialization, and high-level service that Wiseplan offers in executive search projects, we invite you to contact us directly and check out our professional references and various success stories supporting companies of different sizes and from different sectors.

You can contact us directly at:
. The alternatives available onour website
. In person at Los Militares 5953, office 1208, Las Condes, Santiago, Chile.
. Or by phone (+56 2) 3224 6860 and email: contacto@wiseplan.cl

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