Author Topic: One Bad Hire Can Bankrupt A Business, Studies Show  (Read 440 times)

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Offline Rapunzel

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One Bad Hire Can Bankrupt A Business, Studies Show
« on: October 22, 2013, 05:28:17 PM »

One Bad Hire Can Bankrupt A Business, Studies Show

 Do you know the real cost of a bad hire? The popular online hiring platform does. And the numbers indicate that bad hiring decisions are placing most American companies in jeopardy of swift financial ruin.

While everyone knows that poor hiring choices are expensive, the actual numbers are staggering: Research shows even one bad hire can cost up to 7x an employee’s annual salary (including benefits).

So, for example, hiring the wrong middle manager (at $50,000 per year) can easily cost your company well over a quarter million dollars, while a high level manager can set you back a million dollars or more.

The research also reveals the following sobering statistics:

    The average settlement of a negligent hiring lawsuit is nearly $1 million
    Negligent hiring cases have had verdicts costing up to $40 million
    Employers lose more than 79% of negligent hiring cases

Many companies consider their secret weapon in a business climate where small businesses, and even Human Resource departments in larger companies, are suffering from a lack of resources, budget and staff, making it tougher than ever to find top talent to fill key positions.

Not only is aware of these problems—through its radical streamlining of the online recruiting process, the company has helped tens of thousands of its clients make better, faster and easier hiring choices by enabling them to post a job on over 40 leading job boards with one click, while managing all applicants through a simple online interface.

Another crucial factor fueling the many hiring mistakes being made is the fragmentation of the online jobs market. The huge number of available jobs sites means both recruiters and top applicants are missing opportunities to connect with each other.

“There are so many great jobs boards out there that it’s difficult to keep up with them all,” said Ian Siegel, CEO of “Recruiters who post jobs to only one or two boards run the risk of missing top candidates, yet those who utilize every relevant board will spend hours posting jobs and organizing applicants. It’s a lose-lose situation that we decided to change.”

While simultaneous posting to multiple job boards is’s most popular feature, it isn’t the only way the service helps prevent businesses of all sizes from making disastrous hiring mistakes. For example, their “candidate screening interview” uses a customizable online quiz that allows hiring managers to place real world business questions directly into the online application. This provides an easy and efficient way for hirers to size up an applicant’s knowledge level, and quickly eliminate unqualified candidates.

“I was very pleased and also surprised by the large volume of candidates that we received beginning almost immediately after our posting, most of them being highly qualified for the available positions,” said Lisa Weeks, owner of Love Thyself Day Spa. “With such a large response, the opportunity to post preliminary interview questions as well as rank the candidates was very beneficial.”

Steve Caldwell, CTO of CampusExplorer, agrees: “The part that hooked me was the candidate screening. We only asked four questions and the best candidates literally leapt out at us. I wound up reading just a handful of resumes.”

In all, over 100,000 business have chosen to  help them avoid costly hiring mistakes—including NetFlix, Ford, Wells Fargo, Target and PayPal. For more information, visit
“The time is now near at hand which must probably determine, whether Americans are to be, Freemen, or Slaves.” G Washington July 2, 1776

Online Oceander

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Re: One Bad Hire Can Bankrupt A Business, Studies Show
« Reply #1 on: October 22, 2013, 11:19:55 PM »
I hate to say it, but this strikes me as nothing so much as a covert ad for - as a placed story intended more to boost ziprecruiter's brand than to actually disseminate any real news.
I won't vote for Clinton, but I cannot vote for Trump.  How could I explain to my daughter why I supported a man who sees her as nothing more than a piece of meat, a piece of a$$ for him to grope for his own private pleasure.

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Offline olde north church

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Re: One Bad Hire Can Bankrupt A Business, Studies Show
« Reply #2 on: October 23, 2013, 06:24:32 AM »
I wonder if there is any connection between these people and the folks in the late 90's who rewrote the customer service plans?  The one where you give your info to every one you speak with before they attempt to resolve your problem?
Why?  Well, because I'm a bastard, that's why.

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