Much has been written about the true cost of a bad hire. According to the U.S. Department of Labor, they cost a company up to 30 percent of its annual earnings. In a recent Entrepreneur article, How One Bad Apple Can Spoil the Team, the author uses the 2018 Norway Olympic Men’s ski team to exemplify how cohesiveness and positivity breed success. “If you have teammates who uplift you…you’ll work harder and stay motivated,” the author states.
On the other hand, “one bad apple” or “bad hire” can topple the dynamics, and there goes your bottom line, reputation, and productivity. The office environment isn’t the Olympics, but great companies are comprised of employees who get along and respect one another. In an article from Forbes on How to Build a Successful Work Team This Year, the author points out how healthy competition, a culture of support, and working toward common goals are key to team building. However, missing out on these cues can, unfortunately, cost you in ways you may not realize.
Hidden Costs of Unhappy Employees
The most apparent cost you’ll face is the financial burden of employees who aren’t pulling their weight. The more you invest in an employee who isn’t living up to your expectations, the less you grow your company.
The hidden costs are a lot more insidious and far-reaching. For every great employee you have, you may have ten that are just getting by. They all get paid the same, and sooner or later, the great employees start to harbor resentment. Why should they work hard when everyone gets the same reward?
This line of thinking negatively impacts your overall productivity, retention rates, workplace morale, and even your corporate culture. You want employees motivated to give their best and come to work because they know they can make a difference.
Part of the reason companies look to staffing agencies for employees is to tap into talent pools they may otherwise not have access to and avoid those bad hires in the first place. Sure, there are fees paid to the recruiting company, but they are far less in comparison to what you would lose when the employee doesn’t work out. For a complete breakdown of what it costs to use a recruiting company for energy hires, visit 5 Essential Metrics to Track when Hiring in the Energy Sector.
Fixing The Issue
If you aren’t using a staffing firm for your energy placements, the first step to avoiding underperformers in the energy industry is recognizing you have a problem. The second is raising the bar and letting your employees know that mediocracy isn’t good enough anymore. If you aren’t providing timely feedback, it could be they thought they were doing great. Generally, we find poor performance stems from a more significant issue such as compensation and benefits. So, start holding quarterly performance reviews at first. Doing so may motivate a good portion of your staff to begin performing at a higher level. You can eventually drop this down to annual or semi-annual reviews, but for now, you want to put your mediocre employees on notice – and keep them there.
In Employee retention: 10 strategies for Retaining Top Talent, the author writes that retention starts with recruiting. Once you identify key characteristics in employees, stick with them. If you are unsure of these identifiers, work with a recruiter to help you identify them, and soon you will discover a more robust return on your staffing investment.
Fixing the issue won’t happen overnight, and you may need to let some people go. Just remember to stay positive and foster a positive and productive workplace culture. Sooner or later, you’ll weed out the mediocre employees and be a much stronger organization as a result.
For more tips on good hires, visit 7 Tips for Building a Strong Team.
Want more help on energy staffing issues that impact your company’s productivity? The recruiting experts at FootBridge Energy Services are here to help! Contact us today to learn more!