As nonprofits expand and begin to compete with other organizations in their sector, recruiters tend to rapidly fill up numerous positions in an attempt to meet increasing business demands. Often, these hasty decisions turn out to be costly for an organization and define what is called a bad hire. According to a study conducted by Brandon Hall Group, more than 95 percent of organizational respondents have admitted to making bad hires every year. Needless to say, these decisions can end up costing nonprofits thousands of dollars annually.
A bad hire costs more than just money.
Regardless of an organization’s size, a significant amount of money should always be allocated for the hiring budget—covering fees such as job advertisements, agency recruiters, training and new hire salaries. However, when asked about the cost of a bad hire, more than 30 percent organizations had no clue about it.
Understanding the financial impact involved when brining on a bad hire is crucial for an organization to learn how to effectively pinpoint and avoid the “bad” job candidates in the future. After all, making poor hiring selections often leads to a drop in business performance and employee morale.
In general, bringing on a bad hire will negatively influence your nonprofit’s productivity, culture and retention.
What factors lead to a bad hire decision?
There are many avoidable mistakes that can lead to a bad hire—resulting in budget deficits and overall frustration. According to the report, more than 69 percent of survey participants identified a bad or broken interview process as the leading reason for bringing on bad hires. An inconsistent and disorganized interview strategy will be prevalent to potential new hires—and will likely scare off any rockstar job candidates.
Additionally, an organization with weak brand management—one that lacks the ability to attract and retain top-tier talent—is also more likely to select the “wrong” hire. Moreover, organizations that fail to prioritize candidate experience during the talent acquisition portion of the hiring process are also vulnerable to making bad hiring selections.
So whether your nonprofit needs to revamp its job advertisement strategies, coach your management team on interview questions, or even create a hiring process from scratch, developing a consensus around the “type” of hire to look for is the first step toward hiring the best job candidate… the first time around.