Accuchex Blog

Why You Cannot Afford Bad New Hires

Posted by Tristan Ruhland on Dec 25, 2014 9:30:00 AM

you-cannot-afford-bad-new-hiresIn many companies, the HR department has a significant and integral role in the recruiting of new hires. From a regulatory and legal compliance approach this is critical and necessary. However, it is in the best interests of every business to do everything they can to avoid making poor hiring choices.

And the role of the HR professionals in those businesses is essential here, as well. New hires that are a poor fit for the company, or who are simply not good choices as employees in general, constitute a huge financial drain on a business.

Your Business Cannot Afford Bad New Hires


The costs of recruiting, hiring, and then releasing a poor choice - combined with the additional cost of once again finding, recruiting and then hiring another new employee can be staggering. 

How staggering? This infographic from Mindflash, based on data from, illustrates the vast number of specific costs resulting a bad new hire:




Most businesses surveyed reported annual costs from bad hires of $25,000 to $50,000. For most businesses that constitutes the equivalent of a year's salary for one low-to-mid level employee. 

70 percent of the respondents noted that the reasons for their poor hiring decisions arose from a lack of proper recruiting and hiring procedures, or lack of due diligence. They were in a hurry to fill a position, lacked proper screening processes, or failed to test the candidates for the position.

New Hires Incur Costs and Bad New Hires Cost Far More

Most managers and even many business owners fail to recognize the inherent costs involved in the recruiting and hiring processes. They focus primarily on their own time and efforts expended in the search for a new employee, or the stress of being "short staffed" while looking for a new replacement.

But the costs are real and the added costs a making poor hiring choices can be minimized if not avoided althogether. And this is where the HR department can become a strategic ally in the hiring process.


In addition to a growing and demanding role in recruiting, hiring, and continually training employees, the HR staff will still be responsible for every other function they are typically tasked with such as payroll management, tax filings, employee records compliance, and so forth.

Considering alternatives such as outsourcing is increasingly becoming a cost-effective and strategic option. Accuchex can help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.

Free Download: Payroll Outsourcing Guide

Topics: ca labor laws, HR best practices, recruiting and hiring, hiring trends

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