Business owners know it can get costly when the wrong person is hired for a job. Just how much has now been determined by a survey conducted by Right Management. A survey of 444 companies found thatâ¦â?it costs an average of 2Â½ times an individual’s salary to replace an employee who doesn’t work out, including recruitment, training, and severance costs, and lost productivity. Â More than 4 out of 10 organizations (42%) said it costs at least three times the employee’s salary.â?
Other consequences include:
– Lower employee morale (68%)
– Decreased employee productivity (66%)
– Lost customers/market share (54%)
– Higher training costs (51%)
– Higher recruitment costs (44%)
– Higher severance costs (40%)