Hiring the right employees is absolutely critical for the success of any organization. However, despite rigorous hiring processes, bad hires often slip through. In fact, according to the Society for Human Resource Management (SHRM), 31% of workers have left a job within the first six months.
And of course, bad hires can be costly, as well. According to the Workplace Institute, replacing an employee costs an average of 33% of their salary. And when you are talking about veterinarians, the cost can add up quickly.
Reasons for Bad Hires
So why do bad hires keep occurring . . . and what can you do to stop them? Below are five common reasons that employers—including Animal Health and Veterinary employers—make bad hires, along with possible solutions.
#1—Inadequate Job Descriptions
When job roles and responsibilities are not clearly defined, candidates and employers may have mismatched expectations. A vague job description can attract unsuitable candidates and leave hiring managers unclear about the exact skills and qualifications required.
Solution: Develop comprehensive and clear job descriptions. Clearly outline the responsibilities, necessary skills, qualifications, and performance expectations. This ensures that both candidates and hiring managers have a mutual understanding of what the role entails.
#2—Poor Screening Processes
This includes ineffective resume screening, inadequate interview techniques, and insufficient background checks. When hiring managers do not thoroughly vet candidates, they risk bringing in individuals who are not a good fit for the company or the role.
Solution: Implement a robust screening process. Use structured interviews, behavioral assessments, and skill tests to evaluate candidates thoroughly. Incorporate background checks and reference calls to verify the information provided by candidates.
#3—Lack of Cultural Fit Assessment
Cultural fit is crucial for employee retention and job satisfaction. However, many hiring processes focus solely on skills and experience, neglecting the candidate’s compatibility with the company’s culture. Employees who do not align with the company’s values and work environment are more likely to leave or underperform.
Solution: Include cultural fit assessments in the hiring process. Develop a set of questions and scenarios that reveal a candidate’s values, work style, and attitudes. Assess how well these align with the company’s culture and values.
#4—Time Pressure and Urgency
Hiring under time pressure often leads to bad hires. When there is an urgent need to fill a position, hiring managers may rush the process and overlook red flags. This urgency can result in hiring candidates who are not thoroughly vetted or are a poor fit for the role.
Solution: Plan for staffing needs in advance and maintain a pipeline of potential candidates. This allows hiring managers to take the time necessary to find the right candidate without succumbing to time pressures.
#5—Overreliance on Gut Feelings
While intuition can play a role in hiring decisions, overreliance on gut feelings can lead to biased and inconsistent hiring practices. Hiring decisions based solely on personal impressions rather than objective criteria can result in poor hiring choices.
Solution: Use data-driven and structured approaches in the hiring process. Implement standardized interview questions and scoring systems to ensure objective and consistent evaluations of all candidates.
The Cost of Making Bad Hires
There are many costs associated with bad hires, and it is not just about the money. Below are four of these costs, along with specific ways in which an organization suffers from making such hires:
#1—Financial Costs
The financial impact of a bad hire can be substantial. As mentioned above, the cost of a bad hire can be up to 33% of the employee’s annual salary. This includes costs associated with recruitment, training, severance, and the additional hiring process for a replacement.
Recruitment and Training Costs: Recruiting new employees involves advertising, interviewing, and onboarding expenses. Training new hires also requires significant time and resources, which are wasted if the employee leaves shortly after joining.
Severance and Legal Costs: Terminating a bad hire may involve severance pay and potential legal fees if disputes arise. These costs can add up, especially if multiple bad hires occur.
#2—Productivity Loss
Bad hires can negatively impact productivity in multiple ways. An underperforming employee can slow down projects, lower team morale, and require additional supervision and support from managers.
Decreased Team Efficiency: When a team member is not pulling their weight, other employees may need to pick up the slack, leading to burnout and decreased efficiency.
Disruption of Workflow: High turnover disrupts workflow and continuity. Frequent changes in personnel can lead to knowledge gaps and a lack of consistency in work processes.
#3—Impact on Morale
Bad hires can have a detrimental effect on overall employee morale. When team members see that poor performers are tolerated or that hiring decisions seem arbitrary, it can lead to frustration and disengagement.
Lowered Employee Engagement: Employees who are dissatisfied with their colleagues or the hiring process may become disengaged, leading to lower productivity and higher turnover.
Negative Workplace Culture: A bad hire can contribute to a toxic work environment, affecting the overall culture and making it difficult to attract and retain top talent.
#4—Reputation Damage
An organization’s reputation can suffer if bad hires lead to poor customer service or product quality. Negative experiences can result in lost customers and damage to the company’s brand.
Customer Satisfaction: Employees who are not competent or engaged may provide poor service, leading to dissatisfied customers and loss of business.
Brand Image: Frequent turnover and poor hiring practices can harm the company’s reputation, making it more difficult to attract quality candidates and customers.
Mitigating the Risks of Bad Hires
The good news is that there are multiple things that Animal Health and Veterinary organizations can do to mitigate the risk of making bad hires. I have included five of these strategies below, along with associated action items for implementation.
#1—Improve Job Descriptions
To attract the right candidates, it is imperative to have clear and detailed job descriptions. This helps set accurate expectations for both the employer and the candidate.
Action: Regularly review and update job descriptions to ensure they reflect the current needs and expectations of the role.
#2—Enhance Screening Processes
Developing a rigorous screening process can help filter out unsuitable candidates early in the hiring process.
Action: Use a combination of resume reviews, structured interviews, skills assessments, and background checks to thoroughly vet candidates.
#3—Assess Cultural Fit
Incorporate assessments that evaluate a candidate’s fit with the company culture. This can include behavioral interviews and scenario-based questions.
Action: Develop a set of questions that explore a candidate’s values, work style, and attitudes, and use these to assess their cultural fit.
#4—Avoid Rushing the Hiring Process
Taking the time to thoroughly evaluate candidates can prevent bad hires. Avoid making hasty decisions due to time pressure.
Action: Plan staffing needs in advance and create a pipeline of potential candidates to avoid last-minute hiring pressures.
#5—Use Objective Hiring Criteria
Implementing standardized and objective criteria for hiring decisions can reduce the reliance on gut feelings and improve the quality of hires.
Action: Develop a scoring system for interview responses and use data-driven approaches to evaluate candidates.
Bad hires are a common challenge that can have significant financial, productivity, morale, and reputational costs for any organization, including those within the Animal Health industry or Veterinary profession. However, there are things that employers can do to reduce the risks of making bad hires so they can gain an advantage over their competition. By using the strategies outlined above, organizations can create a more positive work environment, achieve higher rates of employee retention, and achieve greater levels of overall success.