The Cost of Hiring the Wrong Person

By Raymond Erb

Hiring the wrong person causes the following:

Employee morale suffers

By employing the wrong person, the department or office is at risk of having a lower moral. This happens when employees do not feel comfortable with the office environment and the employee. Work can be slower, there are more errors and less enthusiasm.

Recruitment costs

Referring to the resources and time used in the search of this new employee. Many companies do not have the time to wait for the right person to apply. This puts a time restriction on the procedure. By taking too long there is a waste of resources and the vacant job leaves work unattended minimizing the income of the company

Basic salary and benefits

What if the Company selects the first individual that is qualified but does not have the right attitude or is not teachable? The work may get done but not be satisfactory or bring the expected income. With a minimum salary of $7.25, the cost is more than $600 for the first 90 days. This will vary depending on employment taxes.


Employers must retain taxes on employment. These would be social security, Medicare, and disability. The employer must match the employee’s contribution to some of these. Taxes have due dates that must be reported weekly, semi-weekly, monthly, each trimester, and yearly. This takes time and knowledge.

Equipment and space

This would be the space and utilities necessary for each employee to do their job. Do they need a computer and a desk? Among other things, the costs depend on how rentable space is. It should be given the highest and best use.

Recruitment can be difficult.

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