Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Cost of a bad hire

Cost of a bad hire: Majority of New Zealand hiring managers admit to hiring the wrong candidate

• 98% of New Zealand hiring managers have hired an employee that did not meet expectations, primarily because of a mismatch of skills (49%), the candidate not keeping commitments (37%) or underqualified candidates (35%).

• 46% developed a training program to help grow the candidate’s skill level, 35% respectively had to let the employee at hand go and partnered with a staffing agency to secure a replacement.

• Employers cite increased stress on colleagues (46%), increased workloads for colleagues (43%) and increased stress on managers (37%) as the biggest consequences of a bad hire.

Auckland, 19 February 2019 – New independent research commissioned by specialised recruiter Robert Half shows the majority (98%) of New Zealand hiring managers have hired an employee that did not meet expectations, and more than two-thirds (69%) take upwards of two weeks to six months to discover that they have hired the wrong person.

According to the study of 300 hiring managers, 29% typically realise within a fortnight that a new hire is not meeting expectations. The most common reasons given were a mismatch of skills (49%), the candidate was unable to keep commitments (37%) and underqualified candidates (35%).

What to do with a bad hire?

When asked what steps they took to address the poor hiring decision, 35% of managers respectively say they terminated the employee contract or partnered with a staffing agency to secure a replacement, whilst almost half (46%) developed a training program to develop the employee’s skills to the desired level. Little over one in three (34%) worked with the employee on targets and checked in on their performance regularly, while 29% re-started the recruitment process from scratch to secure a replacement. More than one in four (28%) respectively looked for an internal vacancy the candidate would be better suited for or did not take any action and adopted a ‘wait and see’ approach to see if the employee’s performance would improve.

The cost of a bad hire

Hiring the wrong person for the job can significantly impact an organisation. The top three consequences of a bad hire according to New Zealand employers are increased stress on colleagues (46%), increased workloads for existing team members (43%) and increased stress on managers (37%). Other cited negative consequences include lost productivity (32%), higher recruitment costs (29%) and low staff morale (27%).

Megan Alexander, General Manager of Robert Half New Zealand said: “The cost to a business of hiring the wrong person for the job can be high. Not only do managers have to start the recruitment process from scratch, but companies are also confronted with reduced productivity and they may also potentially miss out on business opportunities. Apart from the financial and time costs associated with a bad hire, non-financial setbacks can also include stress to existing staff from the added workload, which can cause significant disruption to a company’s workforce.”

“Having an efficient recruitment process with the right checks and balances is essential to make the right hiring decision. A successful hiring manager should be able to assess crucial factors in a candidate’s profile, such as cultural fit, technical abilities, qualifications and references – helping companies hire the right candidate and avoid the costly repercussions of a bad hire.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>