More Than Half of Companies in the Top Ten World Economies Have Been Affected By a Bad Hire, According to CareerBuilder Survey

More Than Half of Companies in the Top Ten World Economies Have Been Affected
               By a Bad Hire, According to CareerBuilder Survey

PR Newswire

CHICAGO, May 8, 2013

CHICAGO, May 8, 2013 /PRNewswire/ --A new study from CareerBuilder shows that
hiring the wrong person can have serious implications for companies. More than
half of employers in each of the ten largest world economies said that a bad
hire (someone who turned out not to be a good fit for the job or did not
perform it well) has negatively impacted their business, pointing to a
significant loss in revenue or productivity or challenges with employee morale
and client relations.

For example, among those reporting having had a bad hire, 27 percent of U.S.
employers reported a single bad hire cost more than $50,000. In the Eurozone,
bad hires were most expensive in Germany, with 29 percent reporting costs of
50,000 euros ($65,231) or more. In the U.K., 27 percent of companies say bad
hire costs more than 50,000 British pounds. Three in ten Indian employers (29
percent) reported the average bad hire cost more than 2 million Indian rupees
($37,150), and nearly half of surveyed employers in China (48 percent)
reported costs exceeding 300,000 CNY ($48,734).

The global survey, conducted online by Harris Interactive^© from November 1 to
November 30, 2012, included more than 6,000 hiring managers and human resource
professionals in countries with the largest gross domestic product. 

Percentage of Employers Reporting Bad Hires
The BRIC countries (Brazil, Russia, India and China) – markets that house the
largest number of employers planning to increase the hiring of full-time
employees this year – were the most likely to report being affected by a bad
hire in the last year. However, the majority of employers in all top ten
markets reported similar experiences.

  oRussia – 88 percent
  oBrazil – 87 percent
  oChina – 87 percent
  oIndia – 84 percent
  oU.S. – 66 percent
  oItaly – 66 percent
  oU.K. – 62 percent
  oJapan – 59 percent
  oGermany – 58 percent
  oFrance – 53 percent

"Making a wrong decision regarding a hire can have several adverse
consequences across an organization," said Matt Ferguson, CEO of
CareerBuilder. "When you add up missed sales opportunities, strained client
and employee relations, potential legal issues and resources to hire and train
candidates, the cost can be considerable. Employers are taking longer to
extend offers post-recession as they assess whether a candidate really is the
best fit for the job and their company culture."

Impacts of a bad hire
The BRIC countries were generally more likely to report a variety of negative
effects tied to a bad hire such as productivity and revenue losses while U.S.
ranked high in citing an impact on employee morale and cost to recruit and
train another worker. European countries ranked lower in almost every
category, which may in part be attributed to slower hiring in those markets.

Lost Productivity

  oChina – 57 percent
  oRussia – 45 percent
  oIndia – 42 percent
  oBrazil – 40 percent
  oU.S. – 36 percent
  oItaly – 31 percent
  oJapan – 28 percent
  oGermany – 25 percent
  oU.K. – 23 percent
  oFrance – 15 percent

Affected Employee Morale Negatively

  oChina – 37 percent
  oU.S. – 32 percent
  oGermany – 31 percent
  oJapan – 31 percent
  oIndia – 25 percent
  oRussia – 24 percent
  oBrazil – 23 percent
  oItaly – 23 percent
  oU.K. – 22 percent
  oFrance – 19 percent

Negative Impact on Client Relations

  oChina – 32 percent
  oIndia – 25 percent
  oRussia – 22 percent
  oBrazil – 21 percent
  oItaly – 20 percent
  oU.S. – 18 percent
  oGermany – 17 percent
  oFrance – 17 percent
  oU.K. – 16 percent
  oJapan – 13 percent

Fewer Sales

  oChina – 24 percent
  oIndia – 24 percent
  oRussia – 22 percent
  oJapan – 13 percent
  oU.K. – 12 percent
  oFrance – 11 percent
  oBrazil – 11 percent
  oU.S. – 10 percent
  oGermany – 9 percent
  oItaly – 9 percent

Cost to Recruit and Train Another Worker

  oBrazil – 35 percent
  oU.S. – 31 percent
  oIndia – 31 percent
  oChina – 30 percent
  oRussia – 29 percent
  oItaly – 23 percent
  oU.K. – 22 percent
  oGermany – 15 percent
  oFrance – 12 percent
  oJapan – 11 percent

Survey Methodology
This survey was conducted online within the U.S., Brazil, China, France,
Germany, India, Italy, Japan, Russia and the U.K. by Harris Interactive^© on
behalf of CareerBuilder among 400 to 2,611 hiring managers and human resource
professionals (employed full-time, not self-employed, non-government) in each
country between November 1 and November 30, 2012 (percentages for some
questions are based on a subset, based on their responses to certain
questions). With pure probability samples ranging from 400 to 2,611, one could
say with a 95 percent probability that the overall results have a sampling
error between +/- 4.9 and +/-1.92 percentage points. Sampling error for data
from sub-samples is higher and varies.

About CareerBuilder®
CareerBuilder is the global leader in human capital solutions, helping
companies target and attract their most important asset - their people. Its
online career site, CareerBuilder.com®, is the largest in the United States
with more than 24 million unique visitors, 1 million jobs and 50 million
resumes. CareerBuilder works with the world's top employers, providing
resources for everything from talent and compensation intelligence to
employment branding and recruitment support. More than 10,000 websites,
including 140 newspapers and broadband portals such as MSN and AOL, feature
CareerBuilder's proprietary job search technology on their career sites. Owned
by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company
(NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States,
Europe, South America, Canada and Asia. For more information, visit
www.careerbuilder.com.

Media Contact
Jennifer Grasz
773-527-1164
Jennifer.Grasz@careerbuilder.com
http://www.twitter.com/CareerBuilderPR

SOURCE CareerBuilder

Website: http://www.careerbuilder.com
 
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