Making a bad hire decision can have far reaching and lasting effects on your construction company. Not only can their negatively influence the morale of the team, but they can also significantly lower company profitability. It is imperative that you keep an eye out for red flags to avoid what could be a devastating situation.
According to the United States Bureau of Labor Statistics, a bad hire can cost an organization up to 30% of the employee’s salary. Since payroll is 70% of an organization’s cost structure, any loss on this line item can have a significant impact.
Two things happen when an organization makes a bad hire or has a toxic employee working for them.
- Decreased productivity and morale – When there is toxic member on a team, their productivity or lack thereof can negatively impact the productivity of the entire team, and morale can quickly take a nosedive.
- Increased turnover –The impact of decreased productivity and company morale can cause top talent to begin looking elsewhere. Your best talent is over 50% more likely to leave if they are working with a toxic employee.
The best way to avoid making a bad hire is to recognize the warning signs during the hiring process. Red flags to look for include:
- Disorganization – The candidate has a sloppy resume, their LinkedIn profile has not been updated, and their social media has questionable content posted on it. They may also be late to the interview, overly casual or otherwise unprofessional in their interactions and demeanor.
- Ignorance – More than a third of candidates are unable to talk about the company they are applying to during the interview. Not doing their due diligence for a job interview can be indicative of their overall work ethic and how they would approach projects once hired.
If you make a bad hire or have a toxic employee on your team, it is important to understand the impact this can have so you can take immediate steps to remedy the situation. Keeping an eye on possible red flags allows your company to increase revenue and retention of top talent.
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