The majority of employers in each of the ten largest world economies experienced a “bad hire” – where an employee was not a good fit for a job or did not perform the job well – that negatively impacted their business with a significant loss in revenue and productivity, according to a new study from CareerBuilder that shows how hiring the wrong person can have serious implications for companies.
The global survey was conducted online by Harris Interactive© from November 1 to November 30, 2012 and included more than 6,000 hiring managers and human resource professionals in countries with the largest Gross Domestic Product (GDP). While Russia, Brazil, China, and India were the most likely to be affected by a bad hire, the majority of employers in all top ten markets reported similar experiences:
- Russia – 88 percent of employers reported bad hires
- Brazil – 87 percent of employers reported bad hires
- China – 87 percent of employers reported bad hires
- India – 84 percent of employers reported bad hires
- United States (U.S.) – 66 percent of employers reported bad hires
- Italy – 66 percent of employers reported bad hires
- United Kingdom (U.K.) – 62 percent of employers reported bad hires
- Japan – 59 percent of employers reported bad hires
- Germany – 58 percent of employers reported bad hires
- France – 53 percent of employers reported bad hires
As for the cost of bad hires, 27 percent of U.S. employers reported a single bad hire cost more than $50,000. In the U.K., 27 percent of companies said a bad hire cost more than 50,000 British pounds. Nearly three in ten Indian employers – 29 percent – reported a bad hire cost more than 2 million Indian rupees and nearly half of employers in China – 48 percent – reported costs exceeding 300,000 CNY.
The impacts of a bad hire reported by the employers in the survey included a variety of negative effects such as lost productivity, revenue loss, negative affect on employee morale, negative impact on client relations, fewer sales, and the cost to recruit and train another worker. The survey was conducted online within the U.S., Brazil, China, France, Germany, India, Italy, Japan, Russia, and the U.K.
The cost of incorrectly choosing a new employee can be high. As reported earlier on ESR News, a December 2012 CareerBuilder survey found that nearly seven in ten businesses – 69 percent – were adversely affected by a “bad hire” of a worker in the past year. Of those businesses, 41 percent estimated the cost to be over $25,000 while 24 percent said a bad hire cost them more than $50,000.
Conducting due diligence background checks is critical for employers since just one bad hire can lead to a host of problems. Employment Screening Resources® (ESR) – ‘The Background Check Authority®’ – is a nationwide screening firm accredited by the National Association of Professional Background Screeners (NAPBS®). For more information, visit http://www.esrcheck.com or call toll free 888.999.4474.
About Employment Screening Resources® (ESR):
Founded by safe hiring expert Attorney Les Rosen in 1997, Employment Screening Resources® (ESR) – ‘The Background Check Authority®’– provides accurate and actionable information that empowers employers to make informed hiring decisions for the benefit of their organizations, employees, and the public. CEO Rosen literally wrote the book on background checks with “The Safe Hiring Manual” and ESR is accredited by The National Association of Professional Background Screeners (NAPBS), a distinction held by a small percent of screening firms. Employers choosing ESR know they have selected an agency meeting the highest industry standards. To learn more about ESR, visit http://www.esrcheck.com or call toll free 888.999.4474.
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