Poor hiring decisions can be costly for businesses. Two-thirds of companies reported a bad hire negatively impacted their business in the past year, with nearly a quarter reporting a cost of over $50,000 per bad hire. Bad hires result in lost time and money for training replacement employees, lower productivity, and negatively impact employee morale and client relations. Employers are exploring new ways to research candidates to help prevent costly hiring mistakes.

1. When Bad Hires Happen March 2011
As companies prepare their recruitment plans for 2011, avoiding In this issue
bad hires will be a priority. The job market is flooded with
qualified candidates, so why are employers having trouble When Bad Hires
finding the right fit with all the top talent available? Time Happen
pressures, strained resources and a lack of insight into target
talent have been the challenges employers are up against when America On The Move
trying to find the right people for their open positions according to
a recent study conducted by CareerBuilder in December . Did You Know
Poor hires are costly, so it is no surprise that two-in-three
companies report that a bad hire has adversely affected their
business in the last year. Nearly one-in-four hiring managers
said one bad hire cost their business more than $50,000 in the Did You Know...
last year. While, four-in-ten said that one bad hire cost them
more than $25,000. It takes an average of nine
weeks for employers to
When asked how a poor hire affected their business in the last determine whether new hires
year, employers reported the following: are well suited for their jobs,
according to a telephone
• Lost time to recruit and train another worker – 39% survey of 500 advertising and
• Less productivity – 38% marketing executives.
• Lost money to recruit and train another worker – 37%
• Had a negative effect on employee morale – 30% 84% of Fortune 500
• Had a negative effect on client relations – 21% companies enforce bans on
• Fewer sales – 11% groups of senior executives
• Legal issues – 9% traveling on the same airplane
flight.
“Among other things, hiring the wrong talent for a position can
have a significant effect on an employer’s bottom line,” said If Facebook were a nation it
Jamie Womack, vice president of corporate marketing for would rank third among the
CareerBuilder. “To help proactively prevent bad hires, and their most populous nations in the
impact on the business, employers are exploring new ways to world.
leverage target talent data and research in their hiring process.”
According to Careerbuilder,
Understanding who the target talent is and how they will fit into 49% of employers expect their
an organization is increasingly important as hiring costs workers to check in with the
increase. Fifty-eight percent of employers have an average cost office while on vacation.
per hire of more than $1,000, up from 29 percent in 2008. Nearly
one-in-ten estimate their cost-per-hire at more than $10,000. The average annual pension
Specialized areas that are experiencing a shortage of qualified income for retirees from
talent are reporting even higher recruitment expenses. Eighty American companies is
percent of IT employers said it costs them in excess of $1,000 to $28,437. Corresponding

2. fill an open position. Sixty-six percent of figures for Luxembourg,
health care employers said the same. Britain, and Spain are $37,630,
$22,053, and $15,505.
FAS can help you find the right
candidate and eliminate bad hires (Source: Human Resource Executive,
through our Pre-Decision Program. By October 16,2010 issue)
getting FAS involved early in the
relocation process, they can identify
possible issues such as candidate
objections, family objections, and
negative equity situations. Time and
Newsletter Archive
time again FAS has proven candidates that go through our pre-
decision process start their position faster, stay longer, and fit Read past issues of the FAS
better. Relo News on our archive
page.
(Source: CareerBuilder.com, December 13, 2010)
View Archives Here
America On The Move CONTACT FAS
As it does every January, Atlas Van Lines reviews data on the
If you have any
origins and destinations of their interstate moves during the last
questions contact
12 months. The 2010 Migration Patterns study results provide a
Laurie Johnson
snapshot of relocation patterns, showing an overall increase in
at 800.522.1052
the number of moves, with monthly numbers higher than last
or by email
year's.
ljohnson@gmsmobility
Today’s economy and job market have outbound moves high in
some states, like those in the Rust Belt because of declining
manufacturing and automotive jobs.
Though economic ups and downs have had little influence on the
number of residents moving in or out of other states. For
example, California, Kansas and South Carolina have been
balanced, Indiana has been outbound, and Alaska and North
Carolina have remained inbound for 10 or more years, according
to Atlas’ annual study.
For the first time in two years, Kentucky joined its surrounding
Mideast states-North Carolina, Maryland and Washington D.C.
as inbound states.
Much of the west continues in a balanced state. For the first time
in three years, Idaho moves from an outbound state to a
balanced state, joining California, Oregon, Washington, Nevada,
Montana, Colorado, Utah and Arizona.
Surprisingly despite high foreclosure rates and poor housing
sales, a large pocket of southeastern states including Florida,
Alabama, Georgia and South Carolina saw no drastic increase in
the number of outbound moves possibly because of these states'
popularity as a retirement destination.

3. Washington D.C. was the biggest winner with the highest
percentage of inbound moves for the fifth year in a row. While
Ohio was the biggest loser with the highest percentage of
outbound moves.
View the survey results in it's entirety here.
(Source: Atlas Van Lines 2010 Migration Patterns Survey)
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