Everyone knows that top-performing employees add significant value to your business. However, how can you quantify it?
Moreover, how do you put a value on those employees whose performance is less than stellar? This Value of Hire Calculator allows you to answer these questions by using just a few details, and you'll get an estimate of how much each hire is worth. We will also look at some of the hidden costs of a bad hire.
Hidden costs of a bad hire
It’s common for businesses to underestimate the impact of hiring mistakes. Hidden costs of a bad hire can include wasted recruitment efforts, loss of turnover, wasted training effort and the detrimental effect on team morale and harmony.
Our Value of Hire calculator uses findings to create a sliding scale calculator to provide a guide to how much your top hires and bad hires could be worth to your business.
Another consideration is why bad hires occur. Hiring to fill a recruitment gap because of a shortage of skilled workers and the pressure to recruit to fill the gap is often the case. But don’t fall into that trap as the cost impact can be huge.
By the same token don’t lose great hires at the final hurdle, when you then have to settle for second best. Onboarding communication should be positive and can comprise of emails, letters and phone calls, even asking for feedback before their start date.
The 2018 Candidate Experience Research Report suggests that once an organisation decides to hire a candidate, they first send an offer letter and proceed to negotiate. However, this intricate final step in the process can bring frustration since the organisation may not succeed in closing the deal – especially when the process takes too long. Time continues to be a significant frustration factor with final-stage candidates.
People are our most valuable asset
Securing that top employee can mean so much more than filling a role before moving onto the next one. There is a value to top-performing employees, and it’s important to know what it means to you. How often do you say, ‘people are our most important asset’? Do you, truthfully, mean that and understand what it means to your organisation?
Now you can calculate in monetary terms the cost of a bad hire and the potential benefits of a top hire.