Hiring the wrong person for a job costs a lot more than money.
Every year thousands of professionals aim to move into the Australian FinTech industry or change positions within it. The sector itself is growing rapidly with well over half a billion dollars invested in the market last year.
This has led to sustained growth in terms of jobs and vacancies however hiring the wrong person for your company is still a big problem.
We look at the 3 main areas where a wrong hire can cost your business.
The Monetary Cost
Even though a new employee might not be working out at your company you still need to pay them a wage.
The main headache for businesses that hire the wrong person is the cost involved with doing so. A bad hire can potentially cost your business up to 30% of that employees first year’s salary which depending on the role can equate to a large amount of money.
In fact, you also may end up paying severance pay and the cost of terminating their contract on top of their salary to date.
Losing Time And Resources
It takes a while to recruit someone.
From advertising the position, conducting interviews which can last several rounds and finally having meetings to come to a decision, the process can be a lengthy one. Spending all this time to realise further down the line that you have hired the wrong person for the role can be frustrating.
You may also have spent time and money on training and development for that person too. Not only can this cost money but it can reduce productivity across the business.
The Effect On Morale
Finally, a bad hire can have a big effect on the morale of everyone else at the company.
A group of financial executives that took part in a survey for Robert Half International found that 30% stated an employee who is a bad fit for the company will reduce morale within the rest of the team. Disengagement and a lack of cohesiveness can be common problems felt by other staff members.
This can directly lead to a decrease in productivity and the effectiveness of the business overall.
Finding The Right FinTech Professional For Your Company
The cost of a bad hire in the FinTech industry goes far deeper than the monetary value.
While their salary and any money spend on the recruitment process and terminating their contract can be substantial depending on the business and how senior their role is, it can have a knock on effect in many different areas.
Time wasted and the morale of the rest of your staff are affected as well and this can lead to major problems with productivity and staff retention.
91% of HR managers stated that they find it challenging to find professionals with the right skills for their company and this is where a recruitment specialist comes in.
Not only will an experienced recruiter find FinTech professionals with the right skill set but the chances of a bad hire and the subsequent problems associated with hiring the wrong person are significantly reduced.