Hiring Mistakes Cost Companies

A recent survey by Occupational Health and Safety outlines the trouble hiring mistakes can afford small to mid size companies. Three out of four employers say they've hired one employee they wish they hadn't. Twelve percent of those respondents say that hiring mistake alone cost them about $10,000!

"The businesses we talk to say they are seeing more individuals lying on their résumés or exaggerating their skill sets in order to get scarce jobs. In a down economy, small business owners must be especially vigilant when they bring on new employees," says SurePayroll President Michael Alter.

Most mistakes are being made by negligent or poor hiring decisions. Skipping crucial steps along the way during the hiring process cost these business big:

• "We hired an employee without doing a background check, and then I caught her stealing."
• "We rely mainly on a strong 'gut feeling' to determine if the candidate seems qualified and references check out."
• "Our hiring errors have been largely due to time constraints--we needed to fill a position fast and quickly chose what appeared to be the best applicant from resumes received."

"For small business owners, the psychological and economic strain of making a hiring mistake can be a massive burden on the company," Alter says. "What's more, these kinds of hiring mistakes can be reduced or avoided altogether by implementing proper precautionary measures. Investing in pre-employment screening services is worth the small upfront investment."