Posted by: CS&A Insurance | December 3, 2012

The Cost of a Bad Hire


A formal hiring process is a critical step in helping a company avoid a bad hire. One bad employment decision can lead to several pitfalls for a business.

So you’ve found the perfect potential employee. They handle themselves professionally, are well groomed, and have all the right answers to the questions. Your gut tells you this person is going to be a perfect fit for the company, and you know they will be a great hire. You don’t bother to call any references or run a background check. Too many employers rely on their own judgment and read of people when making their hiring decisions.

Most employers understand creating a safe work environment is extremely important, however few realize this process needs to start before a hire is even made. Take a business where making deliveries is a daily task for a typical employee. The company fails to perform the necessary motor vehicle checks when hiring a new employee. The employee arrives his first day on the job, is handed the keys to a company vehicle, and off he goes. The employer is unaware this new employee has 3 speeding tickets and has been in 3 “At-Fault” accidents. All of the company’s assets are now riding in the trunk of the vehicle driven by the new employee. It will only take one accident and the entire company will be at risk.

Many businesses do not want to incur the costs associated with proper pre-employment screening and background checks. Employers need to realize the costs associated with a formal hiring process are a fraction of what is at risk if a wrong employment decision is made. A bad hire can not only result in higher insurance premiums but can lead to even larger issues, including the livelihood of the entire company.

If you have questions or comments please leave a reply to this post. If you have more specific questions please don’t hesitate to call Travis Wright at CS&A Insurance at 800.999.1109 Today! You can also check out our website, Thank you.

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