How comfortable are you with wasting a third of a full time salary because of a bad hire? The U.S. Department of Labor reports that the price of a bad hire is at least 30 percent of the employee’s first-year earnings
The problem: a private bad hire being publicly displayed
It’s already proven that hiring processes are broken and prone to unconscious biases. So often hiring managers will hire a person they went to school with or someone who shares the same interest in a sports team over a qualified candidate. Only to find out later the new hire is unfit and unsuccessful in the role.
Even a small amount of bias can lead to very big consequences. Dropbox, Facebook, Google and Airbnb have all dealt with negative social media responses over their perceived lack of diversity and inclusion.
This cost the film money and box office. Similarly, the film Birth of a Nation didn’t even break even. With today’s technology, when unconscious bias creeps into your hiring and doesn’t represent your multicultural user base on social media there will be few “likes,” but plenty of shares. Bad word of mouth will occur, ultimately costing you low sales.
Today, social media is a powerful platform. Businesses use it to reach potential customers and stay connected to loyal ones. So why would any company willingly offend large numbers of people? They wouldn’t, consciously.
Unconscious bias is just that: unconscious. Companies fall victim simply because they’re unconsciously displaying their biases. People hold them accountable.
What this means…
- Lack of support and decrease in consumption of products.
- Significant hits to reputation.
- Potentially threatening company’s existence with bad hires. Tony Hsieh, CEO of Zappos, has said that his past bad hires have cost his company “well over $100 million.”
We’re showing you how private unconscious biases in hiring being publicly displayed on social media has proven to induce negative backlash and cost your company financially. That doesn’t dismiss the fact that there are
MORE cost of bad hires:
- Reducing team effectiveness.
- Causing inability to connect with customers.
- Lack of insight into customer needs.
- Just hiring someone who is unqualified and can’t do the job you hired them for because they “seemed like a good person”.
Studies have demonstrated that discrimination in the workplace leads to high employee turnover. This costs employers $64 billion a year. You cannot retain employees who do not feel welcomed, included, valued, and safe.
As one Harvard Business Review study demonstrates, diverse workplaces are more innovative, because they welcome many perspectives and transcend group-think. A half-century of research has clearly shown that conformist teams produce inefficient outcomes.
If Apple product designers gave into groupthinking no longer would we continue to receive our updated iphones we all know and love and would still be using radios for music, phones to talk, and newspapers for the news. Diverse workforces create companies that are extremely efficient and outperform their competitors because they welcome originality and risk taking.
Knowing this caused us to round up simple, cost-effective, steps that companies can take to attract more diverse, qualified pools of talent. Our hopes are that you’ll implement these steps into your organisation’s hiring process and save yourself from suffering these potential losses before it’s too late.