Hiring the wrong person can have serious consequences, particularly in terms of cost. In the top ten world economies, more than half of companies have made the wrong hiring choice, according to CareerBuilder.
No company seems to be immune to an error in hiring. And this error can be costly for the company. In the United States, for example, a single wrong employee profile can be the cause of costs of $50,000 for 27% of companies, while in Germany they amounted to $65.00 for 29% of employers. In the United Kingdom costs were even higher at $77,000 for 27% of them. In Asia, the negative impact is similar to India, where a hiring error can cost $37,000 for 29% of companies while in China close to half report higher costs of $48,000.
Russia more affected
Globally, in emerging countries such as Russia, Brazil, China and India companies seem to be the most affected by botched hiring. These countries are also those where the highest increase in full time hiring is forecast this year.
Among the harmful effects caused are losses of revenue and productivity, reduced employee morale and difficult relationships with customers. And while emerging countries tend to dwell on the losses of revenue and productivity, the United States more cites lower worker morale as a negative impact.