Recently, a colleague of mine wrote a blog post called “How to Avoid Negligent Hiring.” There were some great ideas and thoughts and suggestions, but one thing that was omitted was what kind of costs were associated with a bad hire.
According to a recent survey and blog post by Robert Half Finance and Accounting, there are several costs. The first thing listed by respondents was lowered staff morale (39%). The second was lost productivity (34%). Monetary costs (25%) came in third place. Though they vary from industry to industry, monetary costs can be as much as three times the salary of the person being replaced.
An employee causing an incident can be bad news for a business, especially if that employee ends up hurting someone else. Negligent hiring is a case where an employee injures a co-worker or customer while on the job, leaving you and your company in a difficult position.
If your employee injures a co-worker or customer while on the job, your company might be on the line.
Employers can face negligent hiring charges if a hiring decision results in an employee injuring or harming any person they come in contact with through the job. Not only can negligent hiring result in exorbitant financial costs, but it can also damage the organization’s reputation.