The True Cost of a Bad Hire in IT and How to Avoid It

The True Cost of a Bad Hire in IT and How to Avoid It

Jan 27, 2025 | Hiring Resources, IT, Tips

We’ve been in the IT recruitment sector since 1999, so we’ve seen firsthand the impact that a bad hire can have on a business. Hiring the wrong person for an IT position can be costly in more ways than one, and the consequences can last for months or even years. In this blog, we’ll explore the true cost of a bad hire in IT, and offer some tips for avoiding this common pitfall.

The direct costs of a bad hire

One of the most obvious costs of a bad IT hire is the direct financial impact. According to the Recruitment & Employment Confederation (REC), 85% of organisations admit their company has made a bad hire. Shockingly, the average cost of a mid-manager level with a salary of £42,000 can cost a business more than £132,000. This includes the cost of advertising the job, screening candidates, conducting interviews, and training the new employee. If the employee leaves the company shortly after being hired, the costs can be even higher, as the company may need to start the hiring process all over again.

In addition to the financial costs, a bad hire can also have a negative impact on productivity. What if the new employee is not able to perform their job duties effectively? Other team members may need to pick up the slack, leading to decreased efficiency and potentially missed deadlines.

The indirect costs of a bad hire

Beyond the direct costs, there are also indirect costs associated with a bad IT hire. For example, a bad hire can have a negative impact on team morale. If the new employee is not a good fit for the team, other team members may become frustrated or disengage. This can lead to decreased motivation and productivity.

A bad hire can also damage the reputation of the company, especially if the employee interacts with clients or customers. If the new employee provides poor customer service or makes mistakes on important projects, it can lead to lost business and damage to the company’s brand.

The hidden costs of a bad hire

Finally, there are hidden costs associated with a bad IT hire that may not be immediately apparent. For example, a bad hire can lead to turnover in other areas of the company. If other team members become frustrated with the new employee, they may start looking for new job opportunities, leading to increased turnover and the need to hire and train new employees.

A bad hire can also have a negative impact on the culture of the company. If the new employee is not a good fit for the company culture, it can lead to decreased employee engagement and satisfaction. Potentially this can even lead to increased absenteeism or turnover.

bad hire in IT

How to avoid a bad hire in IT

Given the many costs associated with a bad IT hire, it’s important to take steps to avoid this common pitfall. Here are a few tips for ensuring that you hire the right person for the job:

  1. Define the role clearly. Before you start the hiring process, take the time to clearly define the role and its responsibilities. This will help you identify the skills and experience that are required for the job. Additionally it will ensure that you’re able to evaluate candidates effectively.
  2. Use multiple methods to evaluate candidates. Don’t rely solely on CVs and interviews to evaluate candidates. Consider using other methods, such as skills assessments or personality tests. This will enable you to have a more complete picture of each candidate’s abilities and fit for the role.
  3. Check references carefully. Don’t skip the reference check stage, even if you think you’ve found the perfect candidate. Be sure to ask for references from previous managers or colleagues. And ask specific questions about the candidate’s strengths and weaknesses, work style, and ability to work well with others.
  4. Look beyond technical skills. While technical skills are obviously important for an IT role, it’s also important to consider other factors, such as cultural fit and communication skills. Look for candidates who are able to work well with others

In conclusion

The true cost of a bad hire in IT extends far beyond the financial investment required to fill the role. A bad hire can impact team morale, productivity, and reputation. It may even lead to increased turnover and decreased employee engagement. However, by taking steps to define the role clearly, evaluate candidates using multiple methods, check references carefully, and look beyond technical skills, companies can avoid the many costs associated with a bad IT hire.

How Langley James can help you avoid a bad hire

We has extensive experience in helping businesses avoid the costs and headaches associated with a bad IT hire. Here are a few ways in which we can help:

  1. In-depth candidate evaluation: We use a multi-stage evaluation process to assess candidates’ technical skills, experience, and cultural fit. This includes an in-depth interview, ensuring that we have a complete picture of each candidate’s abilities and fit for the role.
  2. Industry expertise: Our recruiters have deep industry expertise, with a focus on IT recruitment. This means that we understand the specific skills and experience required for IT roles, and can identify top candidates who may be overlooked by other recruiters.
  3. Extensive network: We have an extensive network of IT professionals, including both active and passive job seekers. This allows us to quickly identify top talent and connect them with the right job opportunities.
  4. Ongoing support: We provide ongoing support throughout the hiring process, including reference checking, and negotiation support. This ensures that both employers and candidates are set up for success from the start.

By working with Langley James, businesses can avoid the many costs associated with a bad IT hire and instead find the best talent for your needs. Our experienced recruiters are here to help, whether you’re looking to fill a permanent or contract IT role. Contact us today to learn more about how we can help your business succeed.

The Open Communication Concept

Jan 1, 2025 | IT

It’s the beginning of a new year and time for a fresh start! The festive period is officially over and settling back into work after the Christmas break can feel like somewhat of an emotional roller coaster, motivation levels amongst staff can be low and the reality of getting stuck back into office life can feel like a struggle. Now is the time to revitalize the office and give your employees the boost they need. Increase motivation and satisfaction by creating open, two-way conversations and get your employees talking about their targets goals for the year.

Why create open communication?

Human nature motivates us to eliminate the unknown. Working environments have advanced from hierarchy causing a halt in communication between all levels of the ranking. Employees now want to know the processes behind the structure of the organisation and have a greater clarity of the environment they are working in, and who they are working for. The unknown causes uncertainty, impacting on performance levels. Transparency in an organisation will increase performance levels and ultimately improve employee engagement and retention. Read more on employee engagement and retention here. Job security and the ‘job for life’ concept is progressively becoming obsolete. Employees will feel a far greater sense of security and trust in your business if there is an environment of openness. Employees will take comfort when leaders appear ‘more human’.

5 steps to creating open communication

  1. Commitment to communication from all parties is essential. To ensure a smooth communication procedure can be executed, all members of the team must be willing and committed to the cause. This can only be achieved when all parties understand reasoning and share the same vision as one another.
  2. Leadership integrity is fundamental in order to execute such a proposal. A filter approach to communication is a necessary step in ensuring that open communication can start to penetrate through the hierarchy. Employees will lead by example, so begin the process by creating an appropriate procedure.
  3. Procedures and policies will aid in ensuring that your communication plan can be carried out fluidly. Policies such as an ‘open door’ policy, regular performance meetings, and setting key performance indicators for all employee’s will start to form a basis for open communication.
  4. Disperse negativity and break the cycle of hidden opinions. Encourage employees to discuss with managers any concerns and frustrations they may have. Negativity can impact on the energy and atmosphere and can have a detrimental effect on all parties.
  5. Respect open communication at all levels. Do not reproach, no matter how critical. Sometimes conflict is an aid in learning and development and creates motivation for change and for bettering one’s self. Unfortunately, conflict is often inevitable and must be viewed as simply detection and correction of error, and dealt with appropriately. Maintain order and respect amongst all parties by ensuring that difference in opinions or heated discussions get resolved effectively and completely.

Nurturing your business starts with developing the health of your organisation. Through open communication you can create a stable and well-constructed working environment. If you need help in implementing a solid communications plan, then contact us today on 0207 788 6600, and we will find you the perfect HR professional who will fulfil all your needs and requirements, and help you to achieve your HR goals.