Bad hire, big cost: how to find employees who are a good fit


Employers seeking staff to grow their business have numerous options available, including recruitment agencies and online employment marketplaces, but many would argue it is still hard to find good help these days.

Of course, by basing hiring decisions predominantly on resumes and CVs, employers leave themselves vulnerable to the risk of a bad hire. Why? Because these documents are no guarantee a job candidate will be a good cultural fit or will excel in the role the employer needs to fill. Further, without validation from a third party (e.g. someone who can attest to the candidate’s abilities), it’s hard to know what is the truth and what is spin – after all, the proof is in the pudding.

According to Stephane Kasriel, CEO of Upwork, when an employer relies on resumes to screen job candidates, they are probably overlooking people who are ideal for the job they need to fill but whose resumes, for whatever reason, “aren’t quite right”. He explained, “Maybe they didn’t put the right keyword in, maybe they didn’t go to the right college or take the right major but they’ve still got the skills you need”.

Not only does Kasriel think companies need to ‘move beyond’ resumes, he believes they need to ‘phase out’ the interview. He explained, “Like resumes, interviews favor candidates who are good at telling their own stories. If you ask candidates to describe a challenge they faced and how they solved the problem, you’ll probably wind up hiring those who tell the best tales… that doesn’t always correlate with doing good work.”

Just as overlooking the best candidate is a missed opportunity for a business, hiring the wrong one can be a costly mistake. According to David Jones, Senior Managing Director at Robert Half Asia Pacific, “hiring the wrong talent can cost a business time, money and damage its corporate brand” and there are implications for culture and productivity levels.

The recruitment company undertook a survey of HR managers, with almost two thirds (65%) admitting they have hired an employee who did not meet expectations. More than half of the respondents (55%) said productivity loss was the biggest cost associated with making a wrong recruitment decision.

Further, one in four respondents (23%) said bad hires erode staff morale and one in five (19%) said they result in significant financial costs. These costs include: a salary that outstrips an employee’s actual performance or output; education and training costs; reduced productivity for the employee as well as their colleagues and management; the potential loss of revenue; and the costs associated with re-recruiting for the role.

The Australian Government’s recruitment service, jobactive, helps employers recruit the right staff for their business without a) the hassle of screening multiple candidates and b) the frustration of not finding the right fit. Employers can tap into a network of jobactive providers from over 1,700 locations across Australia to connect with a shortlist of screened and job-ready candidates that fit their business needs.

Plus, employers could be eligible for financial incentives if they employ job seekers through jobactive. Employers could get a wage subsidy of up to $10,000 by hiring mature age workers (50+) or workers aged 15 to 24 years of age. Meanwhile, businesses that hire eligible job seekers who are 25 to 29 year of age, principal carer parents, in long-term unemployment or indigenous can obtain up to $6,500 in wage subsidies.

For more information on the wage subsidies your business may be eligible for, click here or visit jobactive.


Case Study:

Sunland Caravans found the right person for their family business with jobactive.

Roy Wyss is the Managing Director of Sunland Caravans. When it comes to hiring staff, he believes the right attitude is far more important than a skill set. See how his jobactive provider has helped him to find the right staff to fit his business.

jobactive is a recruitment service that helps you find the right staff for your business. Receive a shortlist of screened and job-ready candidates at no cost to you. Visit jobactive.