HR Focus:
A Bad Hire Is Worse
Than You Think
According to the Harvard Business Review, 80% of turnover
is caused by bad hiring decisions. The U.S.D.O.L. calculates
that it costs one-third of a new hire’s annual salary
to replace him.
These figures include money spent on recruitment,
selection and training plus costs due to decreased productivity
as other employees fill in to take up the slack. In addition,
turnover costs climb even higher as you move up the organization:
mid- and upper–level
managers can cost over twice their annual salary to replace. |