July 09, 2012

Even with 25 years as a creative talent agency, we’re still floored by the
True Cost of a Bad Hire, including shocking stats like these:

“Forty-one percent of companies estimate that a bad hire cost them more than $25,000. One in four say it cost them over $50,000.”

And these estimates are conservative.

Calculating employee turnover costs is tricky, but once you add up:

  • Cost of time spent writing/posting jobs, reviewing resumes & interviewing candidates
  • Cost of time spent training & providing orientation
  • Cost of salary, benefits and perks
  • Cost of providing severance or (yikes!) handling a lawsuit

Then add on the often overlooked costs of making the wrong hire:

  • Lost clients and new business opportunities
  • Subpar work and rework due to mistakes
  • Inefficient resource management
  • Blown deadlines
  • Lower team morale

The numbers are gruesome and impact both hiring managers and their teams.

That’s why we created an infographic to help you avoid hiring the wrong person. Because we care, and honestly, after working with thousands of clients of all shapes and sizes, we know just how spot a zombie.

Plus, everyone loves a zombie, right?

Well, unless you have to share a cube with one or pay for its severance vacation.

Take a look, then please share.

Because zombies like to go viral.

Curious about what vitamin t can do for you?

Whether you're looking for talent or looking for work, Vitamin T can help!

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Comments (8)

Umm…great design…fun…but no flesh. Where’s the meat in this zombie apocalypse? Their statistics are “from the internet” which is like saying “I heard someone say this was true.” They don’t back up a single statistic. Could you get away with that if a client asked you where your data and research came from? Didn’t think so. It’s sounds like a Zombie (that needs to be fired) actually wrote this infographic.
Robert Peugh, Mon., July 9, 6:03 PM
Does this take into consideration how a company does not support their new hire the way they say they do? If companies delivered on their promises of training and development, much less of this would happen. Have seen too many good candidates let down by big promises without delivery, sub par initial training and support.
Theres More to This!!!, Tue., July 10, 12:03 AM
Thanks for your feedback, Robert! We pulled data from several different online resources to arrive at percentages for each category, but those categories came right from our own experience of 25 years in the staffing industry helping people hire (and we love to help people find work!). While the exact amount of cost per category varies based on the skills needed for the job, we hope our infographic will help hiring managers better assess the real costs of mis-hiring AND help our talent and our clients make better matches that benefit them both. Believe me, we know there is a very human element involved in hiring - and a bad match for any role is painful for everyone! We were simply being playful by using Zombie imagery, but I appreciate your comments and thank you for taking the time to share them. If you have questions, don't hesitate to reach out to me at shall@vitamintalent.com.
Susie Hall - President, Vitamin T, Tue., July 10, 12:22 PM
Hi, "There's More to This", thanks for commenting. You make a good point. No, it does not account for that, nor other faults that a company might have: bad leadership, poor working conditions, etc. We truly don't mean to say that the entire fault lies with the employee, we just wanted to illustrate how a bad hire can cost a company money, time, and good morale. We believe in freelancers and a temp-to-hire model that lets talent and client get to know one another before taking the permanent plunge. In that case, if a company does NOT deliver on their promises of training and development, a talent could feel to say they didn't want to continue working there with less impact to both parties involved. Thanks again for taking the time to comment, and feel free to reach out to me at tdonnelly@vitamintalent.com if you have any more questions.
Tim Donnelly, Tue., July 10, 12:29 PM
I agree with There's More to This. I think that it is a fun graphic but places to much blame on the hire. Particularly in economic downtimes there seems to be a higher likelihood of blaming the employee and making them feel replaceable. I worked at a management consulting firm for years, and management styles, office culture, and respect for employees lives and growth really need to be focused on. Perhaps an infographic on that. I currently work in an office with such a terrible culture that it may actually be a creator of zombies.
Patient Zero, Fri., July 13, 11:12 AM
Thanks for the feedback, Patient Zero, and great suggestion! This particular infographic is simply meant to show what happens when the wrong person is in the wrong job. That's why we're big fans of freelancers and temp-to-hire, so our talent and clients can get as close as humanly possible to the perfect match, and avoid the uncomfortable situations caused by a mis-match. We are also huge believers of boosting morale, company sponsored educational opportunities, upward feedback, and great benefits to promote a good culture - which is what we practice at both Vitamin T and Aquent. And our role is to be an advocate for our talent while on a freelance assignment to make sure all is right - which is much more difficult to do in a direct hire situation once the commitment is made. Hope this helps provide our perspective? You can reach out to me at tdonnelly@vitamintalent.com if you have any more questions.
Tim Donnelly, Fri., July 13, 12:32 PM
I have been working with corporate language training (English-as-a-second language) for the past 25 years. Though my clients support and subsidize language training, so employees develop communication skills to meet their business targets, few managers genuinely care if and how vendor choice and training strategy affect overall results. Most consider performance assessment meetings a waste of time, and few contribute with relevant comments that may help poor achievers reverse their results. That said, I also agree that the so-called zombies are getting too much flak for misguided management decisions. If companies focus more on the 6% of the cost (recruiting and interviews + training and orientation), managers will bypass the remaining 94% of the remaining cost - and 100% of the frustration - of hiring the wrong applicant. Starting right pays the best dividends.
Humberto Mancuso, Tue., September 11, 7:11 AM
Thanks for commenting, Humberto. We agree with you that putting money into training and retaining employees makes great business sense (it's one of our core missions at both Vitamin T and Aquent – see comments above). Hiring the wrong applicant is exactly what we hope to eliminate with our temp-to-hire services. We want both our clients and our talent can understand each other before making a commitment. If the company isn't a place the freelancer thinks will help them grow, they are welcome to end the relationship, before that bigger commitment is made. Thanks for reading!
Tim Donnelly, Tue., September 11, 1:22 PM

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