What Exactly Is The Cost Of A Bad Hire And How Can It Affect Your Business?
What’s The Exact Cost of a Bad Hire?
Cost of a Bad Hire: A 2005 Leadership IQ survey of 20,000 new hires over a three-year period discovered that 46 percent of those hires failed within 18 months.
Rather than figuring out why this may be the case, most companies have just assumed that nearly 1 out of 2 hires won’t work out. Moreover, they have done so rather than analyzing and refining the process itself.
A proper hiring process is crucial in this day and age to secure the best talent available on the market. Not having one will result in every company’s worst nightmare, BAD HIRES! It’s worthy to note that the cost of a bad hire on average is 30% of their first-year salary.
Using a Learning Management System! (LMS)
- An entry-level employee earning $36,000 per annum would cost on average $10,800.
Not only that but it’s also worthy to note that the actual cost of getting a hire is:
- On average, $4,129 for a new hire.
- 30 days on average is the time it will take to fill the position the new hire is required for.
That’s a hefty cost to bear over a new hire who has most likely not produced any significant results compared to their cost.
Now that we have all this information, how exactly can such monetary and time costs be reduced to the bare minimum? The apparent solution would of course be to improve the hiring process. Improving a company’s hiring process to the peak of effectiveness has many benefits including:
- Shorter hiring time
- Better quality of candidates
- Better Recruiting
- Increased employee retention
The final question remains how can one effectively increase the hiring process in the shortest amount of time possible? What is the solution?
What does this mean?
Simply put, using an LMS to schedule interviews, accept applications and hire only the best candidates effectively is the future of hiring and recruiting the best talent.
Any company that plans on only hiring the best of talents available should be using one, as we discussed earlier an effective hiring process is paramount to better recruiting and increased employee retention afterward.
What would be the best LMS to help your company Improve Hiring Rates? You might be wondering;
“Now that I know that I’m supposed to use an LMS for better hiring, which one should I choose? Which one is going to give the best value?”.
If you’re in need of an LMS that’s capable of improving your hiring rates, making sure you only hire good candidates, and streamlining your hiring process, then look no further than CreateLMS.
CreateLMS is the perfect solution your company needs to successfully make good hires, onboard them, and retain them effectively!.
Create LMS is capable of helping your company;
- Hire faster with greater transparency and compliance.
- Hire based on a candidate’s scores and performance.
- Reduce hiring risk, effort, time, and cost.
- Stay assured with evidence that the best candidate was hired.
All this and more is what we offer at Create LMS. A platform that solves issues with hiring using an app-like experience that is semi-automated, consistent, and process-driven.
Our teams make sure you excel and have the platform to make it happen.
So get in touch and let’s show you this in action and within 90 minutes you will know how to fix your current hiring issues.