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Costs of a Bad Hire
Revealed
© 2017 Robert Half Canada Inc.
The Hiring Environment Has Transformed
2 © 2017 Robert Half Canada Inc.
Shortage of skilled talent
Condensed hiring timelines
Greater competition for
the best people
But Smaller Businesses Also Face
Unique Challenges
Lack of
internal/HR
recruiting
resources
Limited knowledge
of the specialized
employment market
Limited
access to
the passive
job seeker
And most
of all…
limited time
3 © 2017 Robert Half Canada Inc.
54%
said most hiring
managers have
underestimated
the complexity
of the hiring
process
Small Business Owners Sound Off on
Hiring Challenges
62%
admitted to
problems with
their process
86%
confessed to
making a
bad hire
4 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
Hiring the Right People Can Help Drive
Revenue, Expansion, Success
But doing so depends on a solid process.
If companies donʼt have a reliable system,
costly hiring mistakes result.
5 © 2017 Robert Half Canada Inc.
Reviewing hundreds
of resumes
Conducting
multiple interviews
Making a final
decision and
extending an offer
Managing the
reference check process
56%
reported increased
stress on the team
Numerous Costs of a Bad Hire
On average, business owners estimated 52 hours were wasted
on hiring and onboarding employees who did not work out.
19%
cited decreased
confidence in
managers’ ability
to make good
hiring decisions
30%
noted increased stress
on the manager
6 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
Can You Afford the Costs
of a Hiring Mistake?
Mistakes Are Identified Fairly Quickly...
but Take a Long Time to Fix
Realized Bad
Hiring Decision
Time It Took to
Let Person Go
Time Passed Before a
Replacement Started
44 per cent said
it took less than a
month to realize
they made a bad
hiring decision...
but it took three times
that time on average
(16 weeks) to let the
person go.
Seven more weeks passed
before a replacement
started working, with 70
per cent of businesses
putting the added workload
on existing staff during
this time.
27 W E E K S
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
8 © 2017 Robert Half Canada Inc.
56 per cent of respondents said the best new hires come
from referrals, including employees and recruiters. Of the businesses
that use recruiters, 71 per cent said a recruiter was able to
find a candidate they wouldnʼt have found on their own.
4 Ways to Improve Your Hiring Process
#1 – BRANCH OUT
Tip: Donʼt rely on posting jobs online as your sole hiring strategy and simply
hope the right person will apply.
9 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
39 per cent said working with a recruiter saved the company
time by doing most of the work; 26 per cent said it saved
them money by finding someone quickly.
4 Ways to Improve Your Hiring Process
#2 – DELEGATE
Tip: Use a specialized recruiter to reduce hiring timelines and save money.
10 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
27 per cent of businesses working with recruiters said
they do so for the service guarantee.
4 Ways to Improve Your Hiring Process
#3 – GET A GUARANTEE
Tip: Ask recruiting firms about their placement success rates and what they offer
if a new hire doesnʼt work out.
11 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
Along with lining up your next new hire, recruiters can help
you find temporary professionals to ease the burden while
roles are vacant.
4 Ways to Improve Your Hiring Process
#4 – BRIDGE THE GAP
Tip: The right person can alleviate the stress on existing staff, keep projects moving
and be evaluated on the job for a potential full-time role.
12 © 2017 Robert Half Canada Inc.
Robert Half survey of more that 400 business owners and human resource
managers in Canada at companies with 1 to 499 employees.
Robert Half can help you find talent and
avoid costly hiring mistakes.
Our specialized recruiters know the local hiring market and can
offer a range of services:
• Streamline the hiring process
• Identify active and passive candidates
• Promote your organization and the job opportunity
• Interview candidates to evaluate hard and soft skills
• Set the salary range and manage negotiations
• Find temporary staff to bridge the gap during the search
• Provide a service guarantee
Let us manage the process so you can
focus your time on the business.
13 © 2017 Robert Half Canada Inc.
For More Information:
1.855.853.8205
roberthalf.ca/time-to-hire

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Costs of a Bad Hire Revealed | Canada

  • 1. Costs of a Bad Hire Revealed © 2017 Robert Half Canada Inc.
  • 2. The Hiring Environment Has Transformed 2 © 2017 Robert Half Canada Inc. Shortage of skilled talent Condensed hiring timelines Greater competition for the best people
  • 3. But Smaller Businesses Also Face Unique Challenges Lack of internal/HR recruiting resources Limited knowledge of the specialized employment market Limited access to the passive job seeker And most of all… limited time 3 © 2017 Robert Half Canada Inc.
  • 4. 54% said most hiring managers have underestimated the complexity of the hiring process Small Business Owners Sound Off on Hiring Challenges 62% admitted to problems with their process 86% confessed to making a bad hire 4 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 5. Hiring the Right People Can Help Drive Revenue, Expansion, Success But doing so depends on a solid process. If companies donʼt have a reliable system, costly hiring mistakes result. 5 © 2017 Robert Half Canada Inc. Reviewing hundreds of resumes Conducting multiple interviews Making a final decision and extending an offer Managing the reference check process
  • 6. 56% reported increased stress on the team Numerous Costs of a Bad Hire On average, business owners estimated 52 hours were wasted on hiring and onboarding employees who did not work out. 19% cited decreased confidence in managers’ ability to make good hiring decisions 30% noted increased stress on the manager 6 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 7. Can You Afford the Costs of a Hiring Mistake?
  • 8. Mistakes Are Identified Fairly Quickly... but Take a Long Time to Fix Realized Bad Hiring Decision Time It Took to Let Person Go Time Passed Before a Replacement Started 44 per cent said it took less than a month to realize they made a bad hiring decision... but it took three times that time on average (16 weeks) to let the person go. Seven more weeks passed before a replacement started working, with 70 per cent of businesses putting the added workload on existing staff during this time. 27 W E E K S Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees. 8 © 2017 Robert Half Canada Inc.
  • 9. 56 per cent of respondents said the best new hires come from referrals, including employees and recruiters. Of the businesses that use recruiters, 71 per cent said a recruiter was able to find a candidate they wouldnʼt have found on their own. 4 Ways to Improve Your Hiring Process #1 – BRANCH OUT Tip: Donʼt rely on posting jobs online as your sole hiring strategy and simply hope the right person will apply. 9 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 10. 39 per cent said working with a recruiter saved the company time by doing most of the work; 26 per cent said it saved them money by finding someone quickly. 4 Ways to Improve Your Hiring Process #2 – DELEGATE Tip: Use a specialized recruiter to reduce hiring timelines and save money. 10 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 11. 27 per cent of businesses working with recruiters said they do so for the service guarantee. 4 Ways to Improve Your Hiring Process #3 – GET A GUARANTEE Tip: Ask recruiting firms about their placement success rates and what they offer if a new hire doesnʼt work out. 11 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 12. Along with lining up your next new hire, recruiters can help you find temporary professionals to ease the burden while roles are vacant. 4 Ways to Improve Your Hiring Process #4 – BRIDGE THE GAP Tip: The right person can alleviate the stress on existing staff, keep projects moving and be evaluated on the job for a potential full-time role. 12 © 2017 Robert Half Canada Inc. Robert Half survey of more that 400 business owners and human resource managers in Canada at companies with 1 to 499 employees.
  • 13. Robert Half can help you find talent and avoid costly hiring mistakes. Our specialized recruiters know the local hiring market and can offer a range of services: • Streamline the hiring process • Identify active and passive candidates • Promote your organization and the job opportunity • Interview candidates to evaluate hard and soft skills • Set the salary range and manage negotiations • Find temporary staff to bridge the gap during the search • Provide a service guarantee Let us manage the process so you can focus your time on the business. 13 © 2017 Robert Half Canada Inc.