A recent survey of chief financial officers (CFOs) conducted by Robert Half underscores the importance of making the right hiring decisions.  Of the 2,100 CFOs that participated in the survey, 39 percent identified negative impacts on employee morale as the most significant cost of a bad hiring decision.  According to Paul McDonald, senior executive director for Robert Half, "A poor hire can cause friction as other employees are left to take on extra work and fix projects that weren't done right the first time.  Bad hiring decisions also can cause staff to question management's judgment and even lose faith in company leaders."

In addition to lower staff morale, 34 percent of survey respondents identified bad productivity losses as being the greatest impact of a bad hiring decision, while 25 percent of respondents identified monetary cost as a significant negative impact.  To minimize these impacts, employers are well-served in devoting time and resources to training hiring managers and improving the hiring process to ensure that the right applicant is selected for the job.  Sourch:  Robert Half