The cost of hiring a new developer is approximately $22,750, which includes the time spent completing tasks like reviewing applications and conducting in-person interviews. Furthermore, sometimes a new developer might not work out as expected. This mis-hire causes a high cost to the company’s morale and future reputation.
66% of employers have said they experienced terrible outcomes of bad hires in 2012. Out of that percentage, 37% stated that the bad hires ended up hurting employee morale, and 18% said that the bad hires hurt client relationships, according to Hubspot.
Furthermore, 75% of hires result in a mis-hire and a costly one at best. When looking at the cost of a mis-hire, most companies tend to look at the salary as a singular theory, rather than looking at more than what meets the eyes.
So, what is the truth? The cost of a mis-hire includes the time, resources, interviews, training, and an understanding of the opportunity cost. Furthermore, close attention needs to be paid to the productivity, or lack thereof, and what happens when a team is left razzled after a poor developer comes in.
So, what is the gist? According to Hubspot, the “bottom-line” with mis-hires is not what you believe it to be. The actual bottom-line revolves around everything that was ruined or missed out on due to hiring an unqualified hire. In other words, the bottom-line of mis-hires includes everything AND the kitchen sink.
So, what happens when a company makes a mistake by hiring the wrong person, so to say? Well, as I said before, it is costly. Jeff Bezos, the Amazon CEO had a comment to say about the grueling process at a time.
“I’d rather interview 50 people and not hire anyone than hire the wrong person,” Jeff Bezos said.
Need I say much else? No, but in all seriousness, the money you invest in a bad hire cannot be magically refunded like an ill-fitting t-shirt from the store. One of the best practices to follow to avoid these costly mistakes starts with NOT only relying on singular platforms like job boards. In other words, broaden your technique because you want all that is to offer for your job.
Second, it’s important to look at your job descriptions. This can make or break your chance of completing a successful hiring process. Write the job description with the candidate in your mind! If you look on places like LinkedIn and Indeed, you will see similar job descriptions. For example, most of them will focus on a long list of needs the recruiter wants their candidate to have, and a lot of it can be degree favoring. In shorter words, the job description can’t be about the business’s needs only, it needs to be about something more interpersonal that catches the candidate’s eye.
Third, pay attention to your application process. Some application systems are slow and confusing. Some are just ridiculous to navigate through, so candidates end up closing out and moving onto the next one. The application process should be clear and concise. It needs to be as straightforward as possible, so you are not attracting potential wrong hires. Refine what you want to stand out in the process, and stick to that. The more refined and clear, the more traction it will receive.
In the end, everybody makes mistakes, but what matters is what you learned after. It is easy to come across a costly mis-hire, but it is even easier to avoid it with the right techniques and research.