Sometimes the person that looks like the perfect employee on the resume and during the interview ends up being the worst person for the job. This can happen to every employer. In this post, let’s take a look at the cost of a bad hire and how it affects your business. 

When it happens, the employer can either choose to ‘polish’ the person they have and invest a lot in their training or look for an entirely new person for the position. Either way, it’s a bad thing when this happens. You aren’t just losing valuable time, but you are also losing a significant amount of money. This is bad for a company in many ways and, if it happens often, it can destroy your business altogether. 

In this article, you’ll learn how much this can cost you and how it will affect your business. But first, let’s get to some actionable data and learn how you can avoid it before it happens.

Also read: What is your work style? | How to answer work style questions like a pro

Did you know that you can avoid this?

Sometimes it is not the choice of an employee that’s the problem, either. It often happens that you cannot get the best from your team because you haven’t offered them the conditions to work at their best. Perhaps you don’t have the right equipment or the right CRM tools that help them organize their work.

This is your starting point.

Once you are certain that you are offering your team all they need to get the job done – and do it well, you are one step closer to employee retention. 

However, picking the right people for the job is not an easy task, either.

Very often, the reason behind a wrong choice of an employee doesn’t lie in their false resume information or wrong representation. It lies in the employer. It is the job of the hiring manager to evaluate, check, and determine the candidate’s worth during the hiring process. It’s also their job to make this process comfortable and as effective as possible. 

To help you save the cost of bad hires and optimize your company’s profits, we’ll offer you some practical solutions and advice. It all starts with the cost-per-hire formula.

The cost per hire formula explained

Recruitee, a trending hiring software, has created a guide for the cost per hire formula, accompanied by their free calculator to see what your company spends on this. This metric is one of the most important ones for your business since it equals the sum of your recruiting costs divided by the total number of hires.

Basically, this will tell you how much you are spending on hiring and rehiring people, and show you what you can save with the right hiring system. There are many variables to consider here, including the following:

• Employee compensation package. This is the amount of money you are obliged to pay an employee when replacing them. 

• Opportunity costs. Ranging from minor to extreme, the loss of opportunities because you failed to hire a good candidate can make a big impact.

• Recruitment and training costs. You’ll need to find someone else, and do it fast. This costs thousands of dollars and takes a long time. According to a Henfield study, hiring a replacement takes an average of 42 days and costs around $4,129. 

• Onboarding costs. Onboarding and training a new person after you did the same with the wrong person is only adding to that list of costs. 

• Disruption of work processes, incorrectly handled projects, and negative impact on team morale and performance. 

• Lost customers because of poor performance. If your bad hire was dealing with customers and failed you with their work, this probably weakened your brand and made you lose some prospective customers. Choosing the right team can significantly boost customer happiness, but just one wrong person can kill the reputation of your service.

If you take the right approach toward this, you can eliminate or at least minimize the number of bad hires. You can do this with the help of Recruitee that helps you build a winning team, automate the hiring process, and evaluate all candidates more effectively. 

Checking all those resumes is time-consuming and often results in missing important information. Automating it based on your required features and with the help of collaborative hiring software can maximize your success when hiring qualified candidates.

Also read: How to build a fail proof performance rating system?

The costs and consequences of a bad hire

Recruiting, hiring, and onboarding a new person for a position at your company can cost as much as $240,000 for some companies. Imagine spending this amount twice – or thrice – because you didn’t pick the right person the first time.

Many recruiters don’t realize how much they are wasting by the turnover of employees. Yes, it can happen that you hire the wrong person, but if this happens too often, just imagine the costs that will come out of it!

Nowadays, nearly 3 in 4 employers are affected by a bad hire. This is a business hazard, but it is also something that you can work to improve. Think of it this way – if you realize that a person has the wrong set of skills and no potential to do the job as you want them to, you are already late. Your job as a recruiter is to find a person that you can onboard and train to work well as your company demands. 

Now let’s take a look at the consequences of a bad hire. 

If you want to make more accurate calculations and find ways to reduce employee turnover, you need to know how this can affect your business. Here is how bad hires impact your company.

1. Low productivity and team morale

Your team won’t like working with a person that can’t or won’t complete their tasks. If your new hire is bad at their job or unwilling to do it well, if they don’t perform well under pressure or are snappy, they can destroy the productivity of the entire team.

A bad hire will almost always impact the work of others. One of the biggest consequences of a bad hire is the increase in anxiety and stress in the workplace. If people in your team all know how to do their work, they won’t be pulled back by someone less competent or stressed out because of their poor performance.  

According to London self-storage “…25% of employees are taking days off or quitting their job because they want to avoid conflict. “

So, a bad employee won’t just hurt you with their bad work. They will also ruin team morale and productivity and can result in a higher employee turnover. Surely, you can’t find an entire team that complements each other and finds everyone to be nice to work with. However, even a single bad hire with a bad personality can poison your company’s culture.

Also read: How to Boost Productivity at Work? | Proven ways to increase productivity

2. Customers and clients may leave

Bad hires affect your relationships with partners and customers, too. You can only have a good customer support team if everyone you hired that communicates with your customers does their job well. One bad experience can ruin your brand, and customers won’t like buying from your company if your bad hire offends them, treats them poorly, or does their job badly. 

Dissatisfied partners and customers are highly likely to write bad feedback about their experience with your company, which can only make this a bigger problem. One bad employee can cause you to lose many people, not just the ones that they worked with directly.

3. Loss of profits

No matter how you look at it and what you account for it, bad hires always cost money. Sometimes they cost tremendous amounts. If you gather the resources spent to find, hire and train the person, that’s just a small part of what you’re losing. 

You’ll be losing customers and other employees, which adds more to the costs. You can lose money on poor manufacturing due to that person’s mistakes. If you keep the bad hire on your payroll, your business can suffer even more.

Truth is, bad hires cost companies a fortune. That’s probably the number one reason why you should work hard to avoid this.

Also read: People Analytics and HR Analytics 101 | Metrics, best practices, software & tools

4. Bad brand image

Rocky Vuong, CEO of Sidepost, says “…brand image is a unique blend of functional and emotional characteristics that consumers perceive as added value, unique experiences, and fulfillment of promises.” Hence, why the reputation of a business is of grand importance for its survival and success in the market. This doesn’t happen overnight. Most businesses work hard for years to establish a good brand image. “

One or a few bad hires can destroy that image and push you backward. You’ll have to work even harder to establish your brand’s image, and it can take forever to fix the mistakes they made. 

This is why it is important to find someone competent, and a person aligned with your business goals and needs. 

Wrapping up

The cost of hiring the wrong person can be very high for a business. It’s not just about the financial costs, either. It’s about the loss of time and the lost brand reputation, or the loss of qualified team members that didn’t want to work with a bad hire. 

It’s about time that businesses acknowledge just how important this is, and work harder to find the right people for the positions they are offering.

admin

In the modern-day businesses are travelling more frequently than ever before. This is because it seems that companies are having more opportunities to expand into national and even global markets. ​However, if travel is not managed properly then it can prove to be a great expense and exceedingly difficult to organise. That is why you need to seek the aid of a business travel management company.

Developing your corporate travel program

If you operate a business where employees have a frequent need to travel then you will need to have an effective company travel program in place. If you do not have a system in place to organise your travel then you will undoubtedly be running at high levels of inefficiency. 

This is because your travel costs will be high, you will spend too long organising trips, and you will miss out on the best deals.

It is always recommended to take advantage of one of the travel management companies out there at the moment. They will be able to provide you with a single-source solution whereby you can search for the cheapest travel and accommodation deals, view all of your important data, create itineraries, and set up tracking and alerts. 

These companies have access to great deals and global knowledge and thus their input is imperative. Not only is this beneficial, but the savings they provide will prove to be invaluable for everything from saving costs on airfares to conferences and events to hotel costs.

Also read: A Guide On Team Building Activities For Diverse Remote Teams

What are the benefits of using a travel management company?

Before we take a look at the factors to consider, let’s reveal why using a travel management company makes sense:

1. They make travel easier to manage

Companies offering business travel management provide you with the full solution. Through a single-source platform, you will be able to view all information related to your company’s travel; no matter how many places you visit. 

This means you can view key information, such as itineraries and travel times. This makes everything much easier and more efficient to manage as it is the only way to centralise all travel data. 

2. Reduce travel expenses substantially 

Not only this, but business travel agents have a wealth of contacts in the industry. They know how to save you money on everything from rail travel to hotel bookings to car hire. They also provide strategies for saving money, such as using localised data from worldwide countries and suggesting prepaid cards to use too. 

They ensure your money goes as far as possible, which is obviously imperative when looking to keep business expenses as low as you can in order to reap mass monetary gains. 

3. Global support and advice

Aside from the points that have already been mentioned, top business travel agents supply their customers with frequent support. They are able to use their expert knowledge to provide clients with any information or advice they may need no matter whereabouts they are in the world. This also includes medical support from some of the top travel management companies as well.

These three benefits aptly display why any business that travels frequently must have an effective travel agent by their side to help make sure they are reducing travel costs as much as possible and managing their trips effectively.

Also read: Best 50 virtual icebreaker games for remote teams

How do you choose the best travel management company for you?

Now that you know the benefits of a travel management company, let’s take a look at the factors you need to consider when selecting the right business. A lot of people like to use Concur, but some of the Concur competitors may actually be better suited to you based on your needs and requirements.

With that being said, let’s take a look at the different factors you should consider when looking for the best travel management company:

1. How experienced is the company?

You should definitely go for a company that has some years of experience in their locker. After all, you do not want to be someone’s practice project.

Moreover, if a company has not been in the industry for very long, it is unlikely it will have built up the contacts that other businesses have. Consequently, you will not gain access to the best deals and such like.

2. Does the company help you to lower your carbon footprint?

Most businesses are conscious of their responsibility when it comes to looking after our environment. This is a duty that they cannot shy away from.

Companies that travel on a frequent basis are often responsible for a significant amount of carbon emissions and damage to the environment. But, you cannot simply cancel your plans in order to reduce your carbon footprint.

The best solution is to align yourself with one of the leading travel management companies that have unique features for you to make the most of, such as a carbon calculator. This allows you to determine the carbon footprint you are responsible for with every journey you make.

The software should then provide you with some other options that will be less harmful to the environment. This ensures you have the ability to take the greenest route possible.

3. Is 24/7 support provided?

It is definitely recommended to go for a company that offers 24/7 support. If a company merely works to UK office hours you could find yourself experiencing more issues than benefits.

If you are abroad and experience a situation whereby you require urgent help, unless the travel management company offers 24/7 support, it is unlikely you will be able to get the assistance you need.

4. How easy is it to use the software they provide

It is vital that the software in question is easy to use so that you can make the most of it. Can you plan your itinerary for your business trip? Can you easily find the best deals and the information you need? It is vital to consider this.

After all, if the software is not easy to use, all you are going to be doing is halting productivity rather than improving it.

5. Do they have access to exclusive discounts so you can maximize ROI?

How does the company save you money? This is something you need to take a look at. All of the best travel managers have exclusive relationships with various companies, from car hire businesses to airlines. This is how they are able to offer you deals and discounts that you would not be able to get anywhere else.

Nonetheless, do not merely assume that this is what your travel manager is going to provide you with. You need to discover how they are going to lower your business expenditure.

6. What do past customers think about the travel company in question?

You need to make sure the company in question has a good reputation. What is their standing in the industry? Have they won any awards? Do they feature in any top ten lists?

You should also read the reviews that have been left by previous customers. What do they have to say about the service they experienced? Would they recommend it? This is the best way to get an honest assessment regarding the level of quality you are likely to benefit from.

Also read: Top 50 problem solving activities, games & puzzles for remote teams

Final words on choosing the best travel management company for you

So there you have it: everything you need to know about choosing the best travel management company for your business.

There are lots of advantages to be gained by choosing to use a travel management company. You will be able to lower your business expenditure, plan your travel with greater ease, reduce carbon emissions and so on and so forth. Nonetheless, the only way you are going to reap these rewards is if you choose your travel manager with care.

It is important to take the time to assess your options so that you can select a company that best aligns with your travel goals.

With more and more travel managers entering the market all of the time, it can be quite overwhelming. However, if you choose wisely, your travel management company will be able to ensure you travel in the most affordable and efficient manner while keeping your eco-efforts at the forefront as well.

admin

Want to stay on top of hiring trends? Here are 8 ways the hiring process has changed in 2021.

The pandemic has driven many business changes and one area that has changed significantly is the hiring process. As people all over the world began working remotely, this brought about many changes, some of which had already begun before the pandemic and others that were accelerated by it. 

Technology is dominating the recruiting and hiring process and organizations are offering more flexibility in the workplace and focusing on employee needs. Here are some ways the pandemic has changed the hiring process. 

1. Power balance between employer & employee has shifted

Until very recently, employees did what employers expected of them but the tides are turning and the pandemic has accelerated the change. Organizations today need to meet employee needs if they hope to secure the talent that’s necessary for them to thrive in a very competitive world. They have to make an effort to understand and invest in their employees. 

The pandemic made employees think about what was most important to them and gave many of them a desire for more of a work/life balance. HR departments and recruiters need to pay attention to what they expect if they want them to be productive and fulfilled.

Also Read: Managing remote teams | A priceless list of tips to succeed

2. Employees expect more from employers 

Would-be employees expect more than traditional compensation and benefits today. They rank work/life balance, values and company culture highly when making decisions. Employers who set up an employee value proposition that resonates with employees and is tied to a sense of social purpose are more likely to hire successfully. 

Some changes employees would welcome are days off for wellbeing support, marital therapy, long-term financial planning support, technical perks like smartwatches, and offering health checkups. Changes like this could support their mental and physical health with a real benefit for employers in terms of improved productivity. They also expect organizations to be more supportive when it comes to personalized learning and improving their skills. 

3. Diversity and inclusion measures became more of a focus

The pandemic has raised many social issues and candidates will judge a business based on how committed it is and how it demonstrates a commitment to equity and diversity. For some positions, recruiting trends may include removing certain education or experience requirements to help level the playing field. 

Students may be expected to write about social issues like racial profiling in the workplace. If they have to do so, they could benefit from reading argumentative essay examples on social issues by EduZaurus. There is no better way to study than to learn from the best and students can find essay samples on many different topics to learn from. They may also need help from professional writers with their written assignments or to finish a paper when they are under pressure.

Also Read: Diversity Activities | Everything you must know

4. Employers are focusing more on work quality

Over the past year, employees have had more freedom to design their own schedules and decide how, when, and where they do their work. As the autonomy to do this did not seem to negatively affect their productivity, organizations are inclined to allow it to continue. Some are promoting a hybrid working environment that includes both in-office and remote work. 

Employers are generally starting to focus more on quality and productivity than the hours employees are spending sitting at their desks. They are taking the view that employees are accountable professionals who know what they need to do and how to fit that into their lives. 

If organizations can find the right model and sufficient trust exists, more flexibility could be here to stay. There is also a chance of more ‘virtual absenteeism’ and employers will have to find policies and procedures to mitigate against this. 

5. Technology dominates the hiring and onboarding process

As digital software means physical commuting is no longer essential, it is changing the way organizations hire. The pandemic made organizations more comfortable with remote recruiting processes, Zoom meetings, and video interviews. They will need to have a good grasp of the latest technology in virtual recruiting and hiring and understand which parts of a position require in-office work versus remote working. 

Many companies now use video interviews instead of in-person meetings. Pre-recorded interviews enable them to ask questions candidates that must answer. These pre-recorded interviews allow them to quickly identify the best candidates to move forward in the hiring process. 

Successfully onboarding new workers remotely is also possible when using the right technology. An organization can simply agree on a date and time to meet virtually with a new worker and convey information about the company culture, values, mission, vision, and so on. Using key people within the organization to build up a presentation can help with tailoring it to meet the needs of new hires.

Also Read: Remote interview guide | Everything you must know

6. Remote work expands hiring pools

The pandemic showed that it wasn’t necessary for all employees to work in an office building to be productive. This insight has allowed companies to expand their search for talent beyond their own cities or regions. They can now source talent based on where candidates with the best skills live rather than having to use candidates in a specific location. 

When people are working remotely and trying to study at the same time, It can be difficult for them to find the time to complete their written assignments. Social issues like racial diversity, equity and inclusion are topics students may have to write about and reading more essays collected by WritingBros on social issues could be a good place to start. Getting help to write a paper could help them to learn how to avoid plagiarism and other issues.

7. The skills organizations need have changed

In the interview process, employers will not only ask candidates about the skills they already have but which ones they are working on or would like to develop. This type of questioning indicates that employers are ready to help employees to improve their skills and learn new ones. As the pace of work changes, roles evolve and the shelf life of current skills is becoming shorter. Organizations that want to thrive in the future will need new skills. 

Conventional career planning assumes that roles will remain unchanged over the years and follow a linear path. This is no longer the case as static jobs have changed to more project-based work, with employees continually having to adapt to focus on new projects and priorities as the needs of a business change. Organizations are increasingly making use of contractors and freelancers rather than full-time employees.

Also Read: Team Building | Everything you must know

8. More adaptability in the recruitment process

In a COVID-19 world, organizations have needed to be adaptable and change their recruiting processes. They are changing the ways they search for new talent and the channels they used to do this. Virtual job fairs have provided one avenue for some employers to widen their search. 

Recruiting trends in 2021 have also focused more on hiring from within. The pandemic meant employees were flung into new skills, took on new responsibilities, and shifted positions. It became evident that employees who are able to shift positions and take on different projects may be more valuable than those who only have skills in one specific area. 

Conclusion

In 2021 and beyond, organizations will need to diversify their recruiting strategies and use multiple channels to engage with potential hires. Recruitment in the future will require the ability to adapt to a virtual world and use technology to provide more workplace flexibility for employees. Addressing employee needs will be paramount if organizations hope to retain top talent and the need for workplace flexibility is one of their top priorities.

admin

Are you thinking of taking an online human resources course? Here’s a list of 9 best online human resources courses.

Every employee is a human resource, and without the right team to link and manage them properly, the efficiency and workflow of an organization will drastically reduce. As such, the human resources department is a vital and prized part of every organization.

Being a human resource manager is an ever-evolving task. Unlike other departments, you always have to stay updated on the latest HR practices in order to keep your workforce competitive in the market. 

The best HR managers in the world take different courses to brush up their skills and remain relevant in the field. 

After reviewing the top HR courses available, we’ve been able to put together the best of them for your consumption. Without wasting any more time, let’s get into it.

Also Read: Self Directed Learning | An ultimate read for best results

1. People Analytics Certificate Program by AIHR

This course helps HR professionals work on real-world case studies and projects. It helps professionals choose a preferred training area, and it teaches everything to international standards.

HR professionals learn translatable skills from this course that can be applied across all organizational levels and structures. 

This program is one of the best HR courses in the business and is recommended by world-class HR professionals globally. It takes a unique approach to teaching, so don’t expect to be given assignments that you’d take to essay help companies.

Read more: People analytics, HR analytics, Workforce analytics 

2. Human Resource Management: HR for People Managers Specialization by Coursera

This course is created by The University of Minnesota and is hosted on Coursera. It’s an HR management beginners course that focuses on people management, with less emphasis paid to other aspects of being an HR manager. 

This course is designed for entrepreneurs and small businesses, but the principles here can be scaled for bigger companies too. It’s worth noting that this course focuses on the United States perspective of an HR manager.

3. Chief Human Resources Officer Program by Wharton University

Exquisitely designed and delivered by the Wharton University of Pennsylvania, this 9-month course gives practical knowledge on HR management by providing real-world scenarios to apply what you learn.

The program provides live interactive sessions with faculty members, peer network sessions (PNS), and fireside chats with successful HR managers. They also have three teaching modes to choose from. 

By the time you’re done with this course, you’d have learned everything you need to know about being a Chief HR manager.

Also Read: Employee management | A complete guide

4. HR Management and Analytics by Wharton University

Another course by Wharton University makes its way into this list. This HR course provides practical skills in HR management for both old and new practitioners. 

The program combines theoretical approaches with practical applications and flexibility, resulting in a robust and holistic view of HR management. 

Upon successful conclusion of this course, you will understand how to use HR analytics to improve workplace collaborations and receive a certificate of completion.

5. Administrative Human Resources for Beginners by Udemy

This course stands out amongst the 250 human resource courses offered on Udemy, and a majority of the 170,000+ that students who have completed HR courses on Udemy recommend it. 

Created by Illumeo Learning, this program provides all the knowledge beginners need to know about HR Management for an affordable price. 

Udemy has a 30-day money-back guarantee on all courses offered on their site. So, if you feel a course isn’t the right fit, you get your money back, no questions asked. The courses are self-paced and provide actionable steps to shaping your HR career.

Also Read: Team Building | Everything you must know

6. Human Resources Certificate Programs by eCornell

New York’s Cornell University’s Online Sector created an absolute masterclass with these courses. Here, HR professionals are taught how to diagnose challenges while coming up with optimal solutions on the go. 

These courses merge the insight and experience of leading HR researchers around the world. They focus on the current best practices and real-world application that works.

The platform provides different levels of certification, so everyone from beginners to expert level is covered. It is a self-paced learning experience with interaction with world-class faculty. 

The courses enable you to single out segments of the courses that may be difficult for you and allow you to deal with them individually. 

7. Human Resource Management by Harvard University

The prestigious Harvard University created this course on its Harvard Extension School platform. The program provides lessons on HR Management that are both led by instructors or recorded on-demand. 

The courses provided aim to help working professionals and new HR aspirants to understand the core principles of HR Management. It focuses on efficiency in human management by teaching both the human intricacies and behavioral aspects in addition to the technical parts of the job. 

The online program aims to improve the people-management skills of students as well as insight into psychology, government policies, and legalities.

Also Read: Employee Handbook | Critical items that you must know!

8. Human Resource Management and Leadership Specialization by Coursera

Macquarie University created this course, and it ranks amongst the best HR courses in the world. 

After completing the course, students will acquire the skills to lead and navigate the ever-changing global workspace and improve their conflict resolution skills.

A vital feature of this course is the evaluation of leadership theories while examining organizational culture. This program also teaches HR professionals how to motivate staff through and increase efficiency in an organization. 

It’s a 5-month course paced at 5 hours a week that’ll teach you to create a compelling vision, communicate it, and create a more meaningful work experience.

9. Senior Executive Development in Building Future CHROs by XLRI

This executive course was created in association with XLRI Virtual Interactive Learning. It caters to individuals who want to acquire advanced skills that translate into compelling human resource strategies. 

This course spans 10 months, and it’s paced at 3 hours per day. The program is designed to produce future-ready Chief Human Resource Officers that drive business growth with great insight and innovative HR practices. 

Moreover, this course will help you develop into an HR leader who can effectively navigate every organization’s human capital. The curriculum features peer-to-peer learning, networking opportunities, real-world case studies, and hands-on projects.

Also Read: Administrative assistant job description | A complete guide

Conclusion

The above courses stand at the top of HR courses worldwide. They may not be cheap, but they’re a worthy investment for any HR professional who wants to improve themselves. If that sounds like you and you’re looking for the best course that suits you, feel free to try any of the above-listed courses at will. Every single one of them will give you maximum value for money.

Charlie Bird

Charlie Bird is a professional journalist with 10+ years of writing experience. She writes on topics she is passionate about, and that, in her opinion, can bring the most value to the reader. Her goal is to educate and offer a helpful piece of advice.