Hiring the Wrong Employee is Costing You around £30,000

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Financial Hiring Trends Report of 2023

In today's competitive job market, many employers are looking for ways to save money. But what happens when you hire the wrong employee? You could be spending more on the employee than you would have spent by doing a thorough end-to-end hiring process.

We should take into account how much it will cost us if we make a mistake when hiring new employees, and that costs are especially high if we end up hiring someone who doesn't work out for your business. In the UK, the cost of mis hire is around £30,000.

cost of hiring the wrong employee
Cost of hiring the wrong employee

Hiring the Wrong Employees

Hiring the wrong person is a costly mistake that many employers make. This can be due to a lack of research on the candidate, or because red flag warning signs were ignored. The cost of hiring wrong employees ranges from decreased productivity, lower customer satisfaction, and increased turnover rates.

cost of hiring wrong employee
Cost of hiring wrong employee

The cost of hiring the wrong people can have a detrimental effect on an organization's bottom line. This is why it is important to take time and properly vet any potential hires before making the final decision.

The cost of hiring the wrong person can be broken down into three components: recruitment, training, and lost productivity. Recruitment costs are incurred when a new hire is found, while training costs are incurred when a new hire starts at your company. Lost productivity is what you lose out on during the period of the newly onboarded employee adjusting to the business and role.

Recruitment Costs

The cost of hiring a new employee is high, and it's even higher when you hire someone who doesn't work out.

cost of hiring the wrong person
Cost of hiring the wrong person

Training Costs

Hiring the wrong employees is not only a waste of time and money, but can also be an emotional roller coaster for the training manager. Training costs can be broken down into two parts: direct and indirect. Direct training costs are incurred by your company directly for things like orientation programs or in-house instruction sessions for new hires. Indirect training costs refer to lost productivity from other employees who have to pick up the slack when someone leaves.

Productivity and Turnover Costs

The turnover rate is a measure of how many people leave a company or organization over a given period of time. It is calculated by dividing the total number of people who left by the total number of people who were employed at any time during that period.

One of the most common reasons for turnover is hiring the wrong person. The cost of turnover can be high, and it can result in a loss of productivity and profits.

hiring wrong employee
Hiring wrong employee

The cost of turnover is a significant factor in determining how much you need to pay new employees. It also impacts your company’s ability to retain top talent and find qualified candidates.

Using Background Checks to Avoid Hiring the Wrong Employees

Background checks are becoming an important part of the hiring process. They help employers to avoid hiring the wrong employees. Background checks can be done on a candidate’s criminal record, their education and work history, their credit history and more.

cost of a mishire
Cost of a mishire

Some companies use background checks as a way to screen out unsuitable candidates before they join a business. This saves them time and money, because hiring the right candidates is crucially important for the long-term health of the productivity and performance of a business.


What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.

Transform your hiring process

Request a discovery session with one of our background screening experts today.

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