The effects of a good hire

Hiring is challenging. From identifying a role to creating a job description, the interview process, and decision-making, hiring requires many resources, effort, and time. This is why hiring the right talent is imperative due to each hire's impact on an organization. New hires will influence revenue, for better or worse, depending on if the hire is the best for the position. We share our insight on how a good hire can impact your organization's bottom line and how to identify the best talent.

Defining good talent

The recruitment process brings out an array of talent, attitudes, and aptitudes. Sifting through resumes, managing phone screens, and conducting interviews allow leaders to determine which candidate best fits their team. But how do we define a good hire? Of course, hard skills are required to get the job done, but beyond hard skills, hiring managers must be in tune with the soft skills employees need to be successful. A good hire is someone eager to learn, is highly motivated, has a proven track record of success, and can contribute positively to the culture. When we combine hard and soft skills, we can onboard the best talent for our teams.

Increase productivity

Hiring the right talent directly impacts productivity, ultimately increasing revenue. When you hire the best talent, you can expect the new hire to possess the enthusiasm to work hard and the skill to perform, unlike a bad hire. In fact, when high performers are hired, they are likely to be 400% more productive than an average hire. When production is increased 4-fold, revenue, in turn, will increase, making good hires imperative to a business's success.

Customer relations will soar

Customer relations are vital to revenue. When companies establish positive customer relationships, they can expect repeat business and referrals leading to an increase in revenue. Employing people excited to learn and please can help the brand's reputation and increase customer satisfaction. Hiring the right talent is critical as its impact resonates beyond the company doors.

Decrease turnover

Turnover can be costly to an organization. Not only does turnover impact morale, but it affects revenue significantly. Employee turnover is often 1.5 to 2 times the amount of the exiting employee's salary. Leaders also risk an increase in disengagement in their existing team if they make a wrong hiring decision, which can negatively impact the day-to-day operations. So not only do leaders have to start the hiring process over with a bad hire, but they might find themselves with unexpected vacancies to fill, increasing costs, wasting time, and decreasing revenue. Hiring the right talent is critical to avoid the high cost of turnover.

Decrease hiring costs

The cost per bad hire may surprise you. The standard cost has been estimated at $4700/bad hire, but some research has shown that it can be three to four times the salary's position. What's a bad hire? We define it as an employee who doesn't perform or meet expectations during the first few months of being hired. Leaders then have to begin the search from the beginning wasting time and money. Therefore, it is essential to identify and hire the best talent to avoid costs associated with bad hires.

Volt is the partner you need

At Volt, we take the guessing game out of hiring. Our recruiters thoroughly vet talent to understand their skills, abilities, and personalities. These relationships allow our teams to match candidates successfully with our client's needs. Contact us today if you are ready to hire the best talent and increase your bottom line.