The average cost of a bad hire is 30% of that hire’s annual salary.
A single bad hire costs companies an average of $14,900.
For some companies the cost of a bad hire can be as high as $240,000.
The average cost to hire an employee is $4,425.
It generally takes at least six months for companies to break even on new hires.
And these alarming numbers don’t even take into account the “invisible” costs resulting from a bad hire. Other impacts like lost productivity, disruption to workflow, poor employee morale, and decreased retention can be just as damaging to your bottom line and overall business success.
How do bad hires happen?
A lack of time and resources
A biased hiring process
A lack of a coherent hiring strategy
Many factors can impact the quality of the recruitment process and result in mis-hires — an underutilization of onboarding practices, too much focus on processes and paperwork, or a lack of technology that automates and organizes it.
How to improve your hiring process and avoid bad hires
Creating a solid job description: A well-crafted job description is the foundation of any successful hiring process. Defining clear roles and responsibilities helps to eliminate any misunderstandings or misalignments.
Moving efficiently through the hiring process: It’s important to make the process as smooth, quick, and frictionless as possible; otherwise, your ideal candidate could choose a company that acts faster.
Conducting structured interviews: A standardized interview process is critical to ensure consistency and fairness. Interviews should assess both technical and soft skills and include a clear evaluation rubric to score candidates objectively.
Skills testing and assessments: Hiring methods such as technical skills assessments, job simulations, psychometric testing, and situational/behavioral testing help provide valuable insights into a candidate’s abilities and compatibility with the role and company.
Embracing diversity and inclusion: Incorporating DEI in your hiring process positively impacts employee engagement, retention, performance, and innovation. When candidates (and existing employees) feel represented and valued, there is stronger motivation to collaborate and perform in their roles.
Utilizing automation tools: Leveraging HR technology helps streamline recruitment efforts. Tools for workflow automation, background/reference checking, and video interviewing can help alleviate administrative tasks and speed up the hiring process.
Bad hires are avoidable, but you need the right strategy.
Hiring success starts with getting the right candidates through the door — and that starts with the right strategy. Evaluate your current hiring process: Is it delivering the right candidates the first time around, or is it creating a costly problem in the long-term for your business? Take the time to examine your recruitment efforts, and determine where improvements can be made.
Need help transforming your hiring process? The talent experts at Axiom Path have your back. Get the talent solutions your business needs to drive recruitment success — reach out today.
The Real Business Advantage of Diversity and Inclusion
The Real Business Advantage of Diversity and Inclusion
In today’s business world, the benefits of cultivating a diverse and inclusive workplace are more evident than ever. Many companies now recognize that diversifying their workforce is not merely a matter of ethical consideration but a compelling business advantage.
Key benefits of a diverse and inclusive workplace:
Improved creativity and innovation
Stronger employer brand and attraction to qualified talent
Greater employee engagement and lower turnover
Better decision-making and business performance
Diversity drives sustainability and a competitive edge.
As more insights emerge, it’s becoming increasingly clear that to stay competitive and sustainable, organizations need to harness the power and potential of diverse talent.
With rapid change and growth affecting the modern workplace, business leaders are searching for effective ways to remain resilient. This ability to not just survive but thrive in the face of uncertainty depends to a large extent on diversity.1 Change requires versatility — and versatility requires diversity.
“People with different lifestyles and different backgrounds challenge each other more. Diversity creates dissent, and you need that. Without it, you’re not going to get any deep inquiry or breakthroughs.”2
— Paul Block, President and CEO at Merisant
The aim of diversity is not just meeting compliance targets or hiring based on age, race, or gender. A diverse workforce goes beyond demographics — it encompasses different backgrounds, experiences, and perspectives that empower stronger collaboration and better business decisions.
Employing a wide range of talent helps build a culture of adaptability, problem solving, and progressive decision-making — essential elements for staying ahead in today’s competitive markets.
Research insights consistently show that diverse organizations led by inclusive leaders outperform their competition.3
Diversity advances innovation and profitability.
The integration of diversity recruiting not only enriches company culture but also positions businesses ahead in the race to innovative and groundbreaking opportunities, leading to enhanced profitability in the long run.
Research continues to indicate that companies with more diverse workforces perform better financially. While greater diversity doesn’t automatically translate to more profit, the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful.4
Attracting and retaining diverse talent has become more than a competitive advantage — it’s a business imperative to help drive profitability for modern-day businesses.
The most diverse companies are now more likely than ever to outperform non-diverse companies on profitability.5
We’ll help you translate a diverse workforce into a business advantage.
Diversity is not a program or a marketing campaign to recruit staff — it’s become a company’s driving force. Regardless of where you are on the maturity scale, future performance will largely depend on your organization’s ongoing ability to attract, hire, develop, retain, and empower a diverse workforce.
As a diverse supplier, Axiom Path recognizes the transformative power of diversity and understands the unique challenges faced by businesses seeking to build inclusive teams. Our commitment to DEI extends beyond rhetoric — it’s embedded in our processes, guiding every step of our talent acquisition strategy.
Partnering with Axiom Path means aligning with a recruiting firm that values diversity as a driver of business success. We go beyond matching skills and qualifications; we identify candidates who bring a spectrum of perspectives, backgrounds, and experiences to your organization.
By embracing diversity, equity, and inclusion, Axiom Path is not just a trusted recruiting partner but a catalyst for your growth and prosperity. Together, we can forge a path toward a more innovative, adaptive, and successful future for your business.
Get in touch with us to find out how we can help you build a diverse, equitable, and inclusive organization.
1 “Diversity at Work,” Boston Consulting Group, 2017. 2 “Great leaders who make the mix work,” Harvard Business Review, 2013. 3 “Diversity and Inclusion Build High-Performance Teams,” Gartner, 2019. 4Diversity Matters, McKinsey & Company, 2015. 5Diversity wins: How inclusion matters, McKinsey & Company, 2020.
Battle and Balance: Skillset, Location, and Salary
Battle and Balance: Skillset, Location, and Salary
For over a decade, we’ve have seen the battle/balancing act of skillset vs. location vs. salary/pay rate that hiring managers and companies face when looking for new employees. Typically, when it comes to hiring, most businesses pick two of the three.
Right now, we are seeing this shift where employers are forced to allow employees to sit remote… and the employees are not wanting to go back into the office. Even in cases where employees live in the same city they work in, they are choosing to work from home.
How will this affect your hiring strategy in 2023 going into 2024?
Do you go with the flow and allow employees to be remote? If so, how do you keep a collaborative environment?
Do you focus your efforts on culture and location to create an atmosphere that people want to go into the office?
Do you find a balance and do a hybrid model?
Do you hire people who are not as senior in skillset and willing to be onsite to work and learn from someone who is?
Whatever the strategy is, just like having a good diet, it is important to define what your goals are and attack them. Sometimes it is best to work with someone — accountability is a powerful tool. Reach out to someone you trust for advice (like us).
Companies can improve their hiring process by streamlining and optimizing the various stages. This involves clearly defining job requirements, creating well-crafted job descriptions, and utilizing targeted job boards and platforms to attract relevant candidates.
Are you pushing candidates through the interview process in a timely manner that keeps you competitive to the market? Shortening the interview cycle increases the chance of hiring top talent as the longer they are on the market the more opportunities present themselves.
Is there a clear line of communication between the hiring managers and HR on timelines for feedback and next steps?
Utilize multiple sourcing channels.
Diversify candidate sourcing by using multiple channels such as job boards, social media, employee referrals, and professional networks. Casting a wide net to increase the chances of finding the right fit for the role.
Partner with an agency but be cognizant of how many you partner with. You don’t want to flood the candidate pool with inquires for the same job.
Emphasize cultural fit and soft skills.
Beyond technical qualifications, companies should prioritize cultural fit and soft skills assessment during interviews.
A cohesive team that shares common values and work ethics is more likely to thrive and collaborate effectively. Incorporating behavioral questions and situational assessments can provide insights into a candidate’s problem solving abilities, communication skills, and adaptability.
Every year we see “Latest trends for XYZ,” and every year we see people, businesses, and things move in… trendy ways. The past three years we have seen remote work trend, quiet quitting, back to office, skyrocketing salaries, etc. To wrap up 2023, going into 2024, here are some of the trends we would like to see.
Employee development seems pretty straight forward. The truth is leadership wants to have strong employee development, but oftentimes business and other things get in the way. The reality is: if we don’t grow our people then our people will grow away from us. Invest in your people’s lives, in their careers, and build them to be the best version of themselves they can be (in and out of work). Note that if you build people to thrive and grow, they may eventually seek other career pursuits in the future — but what is scarier is if you don’t grow them and allow them to thrive and they decide to stay!
Work/life balance is going to be different person to person, and that’s okay. (Disclaimer: as many of our team members are married and have kids, we encourage our team to take time off with their families). Regardless of what work/lift balance looks like for each of your employees, encourage an environment where everyone is a team and everyone works to grow each other (employee development).
Empower your employees— empower them to make decisions, to take chances, to meet as a team and push each other, to influence the business, and to scale without you. You are not needed in every decision, so empower your employees to take charge and make a difference in their own way!
As technologies constantly evolve, the need to harmonize our human resources and technological pursuits becomes crucial. Count on Axiom Path, your ultimate partner for human capital and professional services. We make it easy to do business with us.