The Cost Of A Bad Hire And How To Avoid It

A single bad hire can cost an employer up to 30% of the individual’s first year compensation. In the hospitality field, damages can go farther and wider. One bad hire touches so many people – both customers and employees, that there is no telling how far the ripples will extend.

Impact of Bad Hires

Employees who are a bad fit for the position or your organization can crush your bottom line. The wrong skills or the wrong attitude can cause problems.

Unhappy customers.  Underperforming employees can turn off customers. Patrons visit restaurants or hotels are to relax, celebrate or conduct business for the most part. An incompetent employee will be remembered  as will one who is surly or unhelpful. This is how you lose repeat and referral business.

Damaged morale. Everyone knows that an employee with a bad attitude can spread discontent. Remember also, that subpar employees can do just as much damage if you don’t retrain or terminate them quickly. Hard-working employees will resent the bad hire or be embarrassed to be associated with him.

Replacement costs. When you are finally ready to let go of a bad hire, you’ll face separation costs. Then you’ll need to advertise for a replacement, interview, onboard and train the new person. All of which could have been prevented if you had hired correctly in the first place.

Making Better Hires.

Understanding the cost of bad hires, how can you avoid making the same mistake again? Are there strategies that prevent bad hospitality hires?

Don’t rush the process. Taking your time hiring can be difficult when you are shorthanded, but a wrong hire is worse than no hire. Carefully analyze the mistakes you made with the previous hire and write the job description from scratch to post and to measure candidates against.

Ask the right questions. Ask  questions that reveal the qualities that will lead to success in the position. Ask for specific examples such as how they would handle an unhappy customer, conflict between employees or other realistic on-the-job scenarios.

Check references. Most people seem like nice, hardworking honest professionals in the interview. As the saying goes, trust but verify. Call references and any previous supervisors.

Get off on the right foot. The first day sets the tone for the employee’s tenure with you. Make time to work with them yourself or pair them with a mentor who can train and answer questions. Choose an employee who is reliable, knowledgeable and enjoys training people to  increase your chance of long-term success.

Need more ideas to improve your hiring process and avoid bad hires? Contact the hotel and restaurant recruiting experts at Horizon Hospitality. We can help you hire more effectively.


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