There are two things to consider here: the real costs of a bad hire and why you should always invest in skills.
Let’s start with some statistics. Altogether 41 percent of companies surveyed say that a bad hire can cost at least $25,000 and another 25 percent of businesses say that the same cost can be more than $50,000.
And that’s just money.
We’re not even counting lost worker productivity, the time lost due to recruiting and training another worker, plus the negative impact on clients.
Why do companies hire quickly, and then regret it?
The most pressing need according to a variety of studies is filling the position as soon as possible. Around 38 percent of companies hire based solely on how quickly they need to find somebody. Of companies, 21 percent didn’t even test or research the employee’s skills well enough and 11 percent of firms didn’t perform adequate reference checks.