Trends

 

05 28 2013

05 28 2013

Bad Hires Cost Small Businesses Money

The economy has picked up, and with it, so too has the labor market. At last count, U.S. employers added 165,000 jobs in April; considering small businesses are the backbone of the economy, a lot of that hiring has taken place at smaller companies.

But entrepreneurs who have hiring intentions need to make sure they’re properly vetting applicants when making employment decisions, lest they put their cash flow at risk by making a bad hire.

According to a recent survey from CareerBuilder, 27 percent of U.S. employers reported that a bad hire cost them more than $50,000. That’s a lot of money, considering 66 percent of hiring managers reported making a bad hire.

But that’s not the only tangible monetary effect bad hires have on small businesses. Thirty-six percent of U.S. respondents reported a bad hire led to decreased productivity, 10 percent cited fewer sales, and 31 percent said it cost them extra to recruit and train another worker.

Additionally, bad hires negatively affected workforce morale (32 percent) and client relationships (18 percent).

Bad hires carry a slew of risks for small businesses that can have a devastating impact on finances. For firms recovering from a bad hire, consult National Funding on what small business loan or merchant cash advance options are available that can help right the ship.

Featured


  • Purchasing trends for retailers

    The Purchasing Trends Retailers Need to be Aware of in 2017

    Retail payments will undergo a revolution in 2017. Numbered are the days of cash and credit card-only transactions. Consumers are pining for a faster, easier and more convenient way to pay for their goods and services, and they have been flocking to digital payment methods as a result. As the new year approaches and beyond,… […]

  • How to get a business loan with bad credit and no collateral

    How to Get a Business Loan with Bad Credit and No Collateral

    Small business owners can develop a successful, vibrant organization and still deal with common problems like bad credit and a lack of collateral. Does that mean your business can't secure a loan? While having good credit and collateral on hand can help you secure a loan in some instances, there are established, dependable alternative lenders… […]

  • 3 Reasons Why A Small Business Loan Is Good For Your Business

    There's one fact of business that no small business owner can deny: Money is essential to stay operational. For business leaders who may be short on funds or in need of money to help invest in future growth for their company, a small business loan can provide the cash needed to get ahead. Many business… […]

  • Future proof your business

    How to Future-Proof Your Business

    After the holiday rush, it's still important for businesses to continue innovating. To maintain longevity and keep an edge over their competitors, managers need to constantly think of ways to future-proof their companies. Although it can be difficult to know what exactly is coming next, a brand can take a few steps to ensure that a company's]… […]