Bad Hires – What’s the Risk?

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Hiring the right people is vital to maintain the success of a business, however recruiting a new member of staff can be a risky endeavour. Not only does it take up a lot of time and investment, but getting it wrong can have a serious impact. We take a look at 4 serious implications of making a bad hire in your business.

Productivity problem

First and foremost, they may not have the skills to complete the job. If they exaggerated on their CV and no background check was conducted, they may not have the experience they claim, and may not be able to do the job they were hired for. This will mean extra strain on other staff who have to pick up the slack, impacting productivity as well as staff morale – no one wants to feel like they are carrying a teammate.

Cracks in the culture

Secondly, and linked to the productivity problem, a new recruit may upset the cultural balance within your team, particularly if they don’t pull their weight. Recent research suggests one reason candidates reject jobs is based on the culture of the new team. But companies need to be just as discerning when picking an applicant, as a bad cultural fit can impact the whole workforce.

Reputation, reputation, reputation

But it’s not just the impact within your workforce you should consider. A bad hire with a customer facing role can do untold damage to your reputation. Long forged partnerships and loyal customers may question their links with your business if they are treated poorly, and reputation can be hard to rebuild once broken. It’s important to know your new hire has the skills to represent your business and enhance the reputation, not damage it.

The bottom line

Perhaps the biggest issue with a bad hire comes down to money. A new report from the Recruitment and Employment Confederation (REC) reveals 33% believe that a hiring mistake costs their business nothing, when in reality, a mid-manager level hire with an annual salary of £42,000 can cost a business more than £132,000. The costs involved are wasted money on training, lost productivity and increased staff turnover.

With all the potential pitfalls of a bad hire, what can you do to prevent it? See our three tips to avoid a bad hire.


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HireRight is here to help guide you through the biggest screening challenges so you can focus on what’s important to you; attracting top talent. HireRight provides employment background screening services to organisations of any size, in every industry, and nearly anywhere.

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The HireRight Blog is provided for informational purposes only and should not be construed as legal advice. Any statutes or laws cited in this article should be read in their entirety. If you or your customers have questions concerning compliance and obligations under United States or International laws or regulations, we suggest that you address these directly with your legal department or outside counsel.

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