A new study from CareerBuilder shows that hiring the wrong person can have serious implications for companies. More than half of employers in each of the ten largest world economies said that a bad hire (someone who turned out not to be a good fit for the job or did not perform it well) has negatively impacted their business, pointing to a significant loss in revenue or productivity or challenges with employee morale and client relations.
For example, among those reporting having had a bad hire, 27% of U.S. employers reported a single bad hire cost more than $50,000. In the Eurozone, bad hires were most expensive in Germany, with 29% reporting costs of 50,000 euros ($65,231) or more. In the U.K., 27% of companies say bad hire costs more than 50,000 British pounds. Three in ten Indian employers (29%) reported the average bad hire cost more than 2 million Indian rupees ($37,150), and nearly half of surveyed employers in China (48%) reported costs exceeding 300,000 CNY ($48,734).
The global survey, conducted online by Harris Interactive© from November 1 to November 30, 2012, included more than 6,000 hiring managers and human resource professionals in countries with the largest gross domestic product.