A Bad Hire Can Cost Small Businesses

Small businesses employ a staggering 51% of all Americans. With a smaller amount of employees, the cost of a bad hire can be high. Whether they don’t work out because of skills, morale, or behavior, replacing them will be expensive.

So, what impact can a bad hire have on a small company?

Bad hires are costly. The longer they’re a part of your organization, the higher up their position, and the more training they receive, the more costly they become. More importantly, they can cause more than financial harm. Your company’s reputation and productivity can be affected. Clients may wonder why you made a bad hire, and firing the hire can be very distracting to other employees.

Sometimes the effects of a bad hire can linger long after they’re gone. Company morale can be negatively affected and other employees could even leave with your bad hire if they’re convinced you’re in the wrong. If you have made a bad hire, it is important to repair relationships with present employees and possibly engage them in your next hiring process to look out for red flags.

Small business owners have a lot of their plates. The typical small business owner has a lot more on their plate than just HR decisions. Finding time to run a company and vet a candidate can be impossible. Not to mention, you are likely not an expert in recruiting and hiring. It can be very easy to miss key things that a hiring professional or screening professional would catch. If you make a bad hire, it can increase your already large workload.

One of the best tools to give a small business owner a hand is a background check. Running a background check takes some of the vetting off your plate and allows someone with more time and expertise do the research. The result is a much more thorough analysis of any potential hire, lowering the risk of making a poor choice.

No matter how many protective measures a small business owner puts in place, there’s always a chance that any hire you make can be a bad one. But by staying aware of the risks and performing a background screen, checking references of the candidate and providing assessments; you can feel secure that you’ve taken measures to avoid bad hires.

Ready to switch to a background screening company that gets small businesses? Contact ClearStar today!

At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.