4:53 am today
New research for employment marketplace SEEK suggests that hiring the wrong people may be costing small and medium-sized enterprises (SMEs) nearly a billion dollars a year.
The report, based on New Zealand and Australian hiring experiences, has put a $20,000 price tag as the cost of putting the wrong person into a job for which they did not meet the expectations.
The sum is based on the definite costs of a wrong hire, including the impact on business finances, and the additional recruitment and training needed to get a replacement.
Seek's New Zealand manager Rob Clark said about one-in-five hirings go wrong and based on the number of SMEs and people being hired the annual cost has been estimated at around $911 million.
