What is a mis-hire?
A mis-hire occurs when the person you hire does not meet the expectations of the role. This could be due to a lack of skills, the wrong personality fit for the team, or the candidate not settling in and choosing to leave early.
In some cases, it becomes apparent quickly, but sometimes it can take months before the problems become clear. Regardless of when it is discovered, it almost always leads to extra work and increased costs.
What does a mis-hire cost?
The short answer: often considerably more than you think.
The cost of a mis-hire varies depending on the role, but it is not uncommon for it to run into hundreds of thousands of kronor – and in some cases up to a million. This is particularly true for specialist or management roles.
The cost typically consists of several components:
- Time and resources spent on the recruitment process
- Advertising costs
- Any external recruitment support
- Onboarding the wrong hire
- Salary and benefits during the period of employment
- Loss of productivity when the role does not perform as expected
- The cost of having to repeat the entire recruitment process
On top of that, there are also a number of “hidden costs”, such as the impact on the team, reduced engagement, and in some cases damaged customer relationships.
Why do mis-hires happen?
A mis-hire is rarely down to a single factor. More often, it is the result of weaknesses in the process rather than the candidate being the wrong fit from the start. This could, for example, be due to an unclear job profile, relying too heavily on gut instinct, or failing to verify the candidate’s information thoroughly enough.
In some cases, unrealistic expectations of the role also play a part, or the recruitment process is carried out under stress and time pressure. When several of these factors combine, the risk of hiring the wrong person increases significantly.
How does a mis-hire affect the organisation?
The effects of a mis-hire are not always immediately apparent, but eventually the problems begin to show. Initially, this may involve underperformance or difficulties in team collaboration. Over time, it can lead to:
- Increased workload for other employees who need to cover for their colleague’s shortcomings
- A poorer working environment
- Reduced productivity
- Dissatisfaction within the team
This becomes particularly clear when the role becomes vacant again and the work needs to be redistributed. In the longer term, a mis-hire can also affect the company’s results. Delayed projects, reduced efficiency and dissatisfied customers are common consequences.
How to reduce the risk of mis-hires
You will never be able to completely eliminate the risk of a mis-hire, but with the right approach you can reduce it significantly.
Start with a clear needs analysis
Before you even publish a job advert, you need to know what and who you are actually looking for. What skills are missing from the team? What are the “must-have” requirements and what are desirable?
The clearer and more well-thought-out the requirements profile is from the outset, the easier the rest of the process will be.
Work in a structured way throughout the process
A structured recruitment process reduces the risk of subjective decisions. Ask all candidates the same questions and evaluate their answers consistently.
This makes it easier to compare candidates and make more informed decisions.
Provide a realistic picture of the role
A common reason employees leave early is that reality does not match their expectations.
Be clear about both the opportunities and challenges of the role. This increases the likelihood that the candidate understands what they are signing up for.
Verify the candidate’s information
This is where many companies make a crucial mistake. Assuming that the candidate’s details are correct can prove costly.
By verifying education, previous employment, references and any professional qualifications, you reduce the risk of unpleasant surprises further down the line. Background checks can be a valuable tool here.
Review your onboarding
Not all mis-hires are due to the wrong candidate – sometimes it is about not giving the person the right conditions to succeed.
A clear and well-structured onboarding process increases the chances of a successful hire.
Background checks – an important part of the recruitment process
Background checks are an effective way to reduce uncertainty in recruitment. They help you verify facts and identify any discrepancies early on.
With the right checks, you can:
- Ensure that the candidate’s information is accurate
- Identify risks early
- Make more confident decisions
- Save time and resources in the long run
DISA has extensive experience in helping organisations reduce risks in the recruitment process through structured and GDPR-compliant background checks. With the right tools and processes, you gain a stronger basis for decision-making – and reduce the risk of costly mistakes.
Build a more secure recruitment process from the ground up
Background checks are an effective way to reduce uncertainty in recruitment. In our white paper, we explain how to verify candidate information, identify risks early, and build a more structured and reliable process.
Do you have questions about background checks?
Get in touch and we’ll tell you how to work more effectively with background checks and reduce the risk of mis-hires in your organisation.
Frequently asked questions about mis-hires
A mis-hire occurs when an employee does not meet expectations or is not suited to the role or organisation. This may be due to a lack of skills, the wrong personality fit for the team, or a mismatch in expectations regarding the role.
The cost varies depending on the role, but includes everything from recruitment costs and salary to lost productivity and time spent on onboarding. For more senior roles, the costs can be very high, especially if the process needs to be restarted from scratch.
Background checks allow you to verify that the candidate’s information is accurate, such as education, work experience and any certifications. This reduces the risk of making decisions based on incorrect or incomplete information.
Background checks are usually carried out at the end of the recruitment process, once you have one or more final candidates. This ensures that the candidate you plan to hire actually meets the requirements.
Roles involving significant responsibility, such as in finance, management or where security is important, should always include background checks. They can also be valuable in other roles if you want to reduce the risk of mis-hires more broadly.