Hiring employees is tough and incredibly time-consuming. Did you know that as many as two-thirds of business owners say they have a hard time finding the right team for their company? What they will tell you is that applicants either don’t have the relevant qualifications, or for some skilled positions, there are many job opportunities making it that much more difficult to attract new associates. For small business in particular finding the right employee can be daunting.
If you’ve ever made a bad hire, you have firsthand knowledge of how important the hiring process is to your business. To hire the best you have to put quality time into the hiring process or you won’t be happy with the results. We know it’s difficult to juggle all your day to day responsibilities and still find time to devote to hiring new associates for your team. The most important decision you make is hiring the right people to represent your business and simply put, you just can’t afford to make a wrong hiring decision. Yet, hiring is still difficult, laborious and doesn’t come with a guarantee of success.
Do you really know who you are hiring? You may think you do, but there are some very alarming statistics out there. Take a look at the list below that has been compiled from multiple sources*
HR Statistics: False Information
- 53% of all job applications contain inaccurate information.
- 49% of the 3,100 hiring managers surveyed had caught a job applicant fabricating some part of his/her resume.
- 34% of all application forms contain outright lies about experience, education, and ability to perform essential functions on the job.
- 9% of job applicants falsely claimed they had a college degree, listed false employers, or identified jobs that didn’t exist.
- 11% of job applicants misrepresented why they left a former employer.
HR Statistics: Bad Hires
- Negligent hiring cases have had verdicts costing up to $40 million.
- The average settlement of a negligent hiring lawsuit is nearly $1 million.
- Employers have lost more than 79% of negligent hiring cases.
- It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.
- The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the first year’s potential earnings.
Employers are amazed when they hear these very shocking statistics. They also become concerned and start evaluating their own recruiting and HR practices. Hiring the right people to represent their business is one of the most important decisions company leaders make. Forward thinking companies have concluded there are many benefits to outsourcing their recruiting. Not only do they add top talent and minimize their liability, but they also gain more time to devote to their business. Third party recruiting and HR firms have the experience and resources to help.
*Sources: CareerBuilder.com Survey, Gurtin vs. Nurse Connection, et Al., Human Resources Management, Recruiting Times, Society of Human Resources Management, Two Wrongs May Mean No Rights, by Barbara Kat Repa, Nolo.com, U.S. Department of Labor, Wall Street Journal.
For assistance with any or all of your human resource needs, HR Affiliates provides solutions that fit any company.