Wrong hire costs you money – here’s how to avoid hiring mistakes

Aishwarya Sinha Ray
min read
Wrong hire costs you money – here’s how to avoid hiring mistakes

There’s no debate that a wrong hire costs your company to a great extent. It’s not just money, not just time but reputation as well. However, when you are on a journey to establish something huge and successful you are bound to take decisions, which you might later regret. It is especially unavoidable when you are running a business and are on the lookout for the best talent for your company. So, before you get all worked up about hiring the wrong candidate let’s try and look at it from a deeper perspective and stop you from the hiring mistakes

While the amount of loss is different for various companies, what’s more important to see is that a wrong hire wastes time – both for the candidate as well as the company. So, the main objective is to save time and towards the end of the blog we will talk about the importance of using HR hiring tools and people engagement platforms that will help you keep the situation under control before a problem even occurs.

Who is a wrong hire

It’s not really a big surprise but there are actually different kinds of a wrong recruitment that exist in our company culture. We’ll discuss a few here but if you’d like to add more, please feel free to elaborate on the list.


An under performer will not only be low on creativity and output but will also halt the progress of the entire team. It will take the team lead double the effort to train them and help them buckle up. The effort is double but the outcome might be nil. We have studied this in chemistry as well that how catalysts speed up a reaction but inhibitors slow down the entire process.

There is another example too. It’s like how it happens in a relay race-

"It’s not the fastest but the slowest runner who will determine whether the team will win or not. The best and the fastest one will, no doubt, give their 100%. That’s why they are considered the best in the first place. If the slowest runner gives his or her 100% then there are much higher chances that the team will win."

In fact, a wrong recruitment is not necessarily an underperformer. If you end up hiring an overqualified candidate for an underrated job, the repercussions are equally damaging. The candidate will not be able to live up to their own expectations and might feel undervalued.


There are other times when the performance of the candidate is not an issue at all but it’s their attitude and the vibe that they carry around with them. They are reluctant to share credit for a group project or they purposefully ignore a peer who is struggling with something.

They might be really good at their work but let’s face it – they are not freelancers, who have the liberty to work at their own will. But they are organisational performers whose contribution adds value to the company and whose attitude can impact the people sitting next to and around them. In the end, resume parsing will only help you figure out whether the skills of the candidate match with that of your expectations. There’s no way to determine the candidate’s personality unless you meet them or work with them over a few months.


Whether you raise $100 million worth of seed funding or bootstrap your own business your end goal is to solve an existing problem, make the lives of the people better and add value to your company. In this process, you try to figure out various channels through which you can get the work done but there are cases where things don’t go as per your plan.

For example, if you hire a team of 10 members to run a program only to realise later that the program is not adding much value to the company then you are constrained to take an action. Either the team did not perform as your expectations or the program wasn’t a viable one. Either way, it’s not exactly the typical example of a wrong hire but the decision sure did have an impending cost.

How do you know the wrong hire costs

While some might find it difficult to deal with such a situation, it’s actually not that convoluted. You just have to figure out the best way to go about it so that the purpose is solved and everyone is happy.

Set clear expectations right at the beginning

This one is like the traffic rule. We know it, we crib about it but we ourselves at times don’t follow it. So, the next time you feel like taking the shortcut and not invest much time on creating a proper JD think about the amount of money that you are going to lose later.

Discuss the role with the candidate to get a fair idea about what they have in mind and what they would like to accomplish with the kind of responsibilities they will be trusted with. No matter how the situation turns out in the end at least you would know that you and the candidate were on the same page regarding the expectations. A number of HR tools can help you with it.

Stop believing in conjectures

Hiring is the first process and therefore, it becomes even more critical to get it right because the further processes will depend on it.

Don’t make assumptions or give a final verdict based on what some other team member has said about the candidate. Keep it in your mind for sure but don’t take the final call based on it. If you want to be sure that you don’t have to worry about the candidate at a later stage then make sure of it on your own.

Double check on the background check

Imagine yourself as a student, who has to take 5 different courses with 5 different teachers. You are an absolute genius in 2 of these subjects but are not very confident with the other 3. Therefore, your teacher’s opinion will differ with your performance in each of those subjects. That’s exactly how different managers will have different opinions about a candidate they have worked with.

I am not saying that doing a thorough background check is not sufficient or efficient but do make sure that the details are coming from reliable sources. I have shared another blog that talks about this topic in detail.

Take an early action by talking it out

There is no smoke without a fire so it is necessary to ensure that there is no fire in the first place. Even if there is you should be prepared to handle it at the first sign of danger rather than waiting for things to get better on their own. Because trust me, they don’t get better on their own.

If you witness that an employee is beginning to develop a laid back attitude, point it out at the initial stage. If the employee isn’t gelling well with the other team members then talk about it before it’s too late. Or if there is a performance or an attitude issue then let the HR or the team lead handle it in their own way. There are chances that things will fall back on track and you will neither lose your organisation’s money nor a valued employee.

Employ HR tools and work with a people engagement platform

Therefore, if you make use of the right hiring tools right at the beginning of the on-boarding process then there are high chances that you will bag the most suitable candidate out of the lot. Resume parsing will help you match the skills of the candidate with your expectations, easy interview scheduling will enable you to automate the process and save more time, easy goal settings will make sure that your employees are dedicated towards their projects and don’t end up developing a laid back attitude. Further, there are portals to share ideas with the entire company to facilitate feedback sharing and open discussions to create a transparent work environment for all.

Time is money, time is precious – Invest it on candidates who will appreciate it and add value to your organisation.

We hope you got some great insights from this blog. Its now time to apply it. Get started with peopleHum for free today. No credit card needed.

HR Tech
human resources
performance based hiring

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