Instead of Measuring the "Cost Of A Hire"... How About Measuring the Cost Of A Bad Hire
Take a moment to think... If your company has a turnover of 20% per year and your new hires are only mediocre, it will take a mere 5 years for your entire workforce to become mediocre. But it doesn't stop there. The cost of a "bad hire" for a mid-level sales executive can exceed millions of dollars and for a CEO it could be $Billions.
Over the years, Americas Executive Search has performed numerous confidential calculations on the Cost Of a Bad Hire (COBH) for our clients as a means of improving the metrics they utilize in analyzing the strength of their recruiting process. However, we generally find that the best results of our analysis are derived when we partner directly with business leaders do the actual calculations.
To help you develop your own metric calculation for the Cost of a Bad Hire, we have developed a simple calculator for your specific use. Simply fill in your own estimated costs below to determine the potential impacts to your organization when a bad hire occurs, or use the estimates we have already provided as a guide.
Your Executive Search and Recruiting Strategy
If you don't successfully search, recruit and hire great people, you won't have great employees. And without great employees you won't have a great company.
No one purposely hires bad candidates but weak internal recruitment efforts and less than stellar selection tools will result in the hiring of mediocre employees non the less and poor employment systems and metrics will result in a significantly higher proportion of "bad" hires.
Instead, your executive search and recruiting strategy should focus hiring leaders:
With more competencies, both proven competencies that you need today, along with those skills that your business will need in the future.
Who are agile leaders that can multitask and shift rapidly to new problems and positions as the needs of your business require.
Who self-develop themselves and teach others to do the same, are continuous learning individuals and do so without the need for company training.
Who have more ideas that are implemented and that impact your profitability.
That inspire, train and mentor others to be more productive.
Who produce more return for every dollar of salary paid them.
It's very simple. Mediocre employees cost you a bundle. Great employees significantly improve your return on investment.
Our Guarantee - Help You to Hire The Best Every Time
Since 1987, Americas Executive Search has provided a menu of services to meet the specific needs of each individual client, services designed to accelerate the hiring process and reduce your Cost of a Vacant position (COV) and proprietary methods to ensure that you reduce your Cost of a Bad Hire (COBH). We do this by hiring proven exceptional talent that can make an immediate positive impact on your business. Whether you represent a start-up venture or you are a global corporation, we are able to accommodate your specific needs. Click on the link for additional information regarding the Specific Strategic Services We Offer and how we can partner together to reduce your cost of a bad hire in the future. If you would like to contact us directly to confidentially request additional information related to your specific needs, please advise us completing our Client Request for Information Form now.
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