"Bad hiring decisions have cost Zappos well over $100
Tony Hsieh, Zappos CEO
"A Silicon Valley
One bad hire can lead to a
domino effect of more bad hires and decisions costing a company millions, says Zappos CEO
Tony Hsieh. He estimates his own bad hires have cost Zappos "well over $100
Watch Hsieh discuss hiring
practices at Zappos and making tough decisions on firing people who don't fit in his team.
How you can create a great company?
To be a great company, you have to consistently identify,
hire and promote great employees.
Before you hire your next employee, make sure you get a true
assessment of the each candidate using Hire Smart Software.
Why do some employees
stride for success and greatness every day while other employees just want to leave work
early and collect a paycheck? The answer is that some employees have an undeniable
determination to succeed. This determination and focus is what every employer should be
looking for in every person they interview.
Sobesoft is proud to release a new
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Smart Software Download
5-Step Hiring Process
Interview all of your job candidates.
2. Select your top
two or three job candidates.
3. Within 24-hours of
each interview, evaluate each candidate using Hire Smart Software.
4. Select the
candidate with the highest Hire Smart score.
5. Repeat this
process for all of your job opening.
Hire Smart's predictive
recruiting algorithm was validated and tuned using the simulated Hire Smart scores of the
following successful people in business, sports and entertainment:
- Jamie Dimon - CEO, JP Morgan
- Thomas Edison - 1,093 Patents
- Michael Jordan - NBA Great
- Peyton Manning - NFL Great
- Marissa Mayer - CEO, Yahoo
- Barack Obama - U.S. President
- Howard Schultz, CEO, Starbucks
- Ryan Seacrest - Radio & TV Host
- Oprah Winfrey - CEO, Harpo
- Mark Zuckerberg - CEO, Facebook
The Real Facts About Bad Hiring
The average cost of a bad hiring decision can equal
30% of the individuals first-year potential earnings. (From the US Department of
Labor and Statistics)
The successful arent immune, and theyve
had to learn from their mistakes. Zappos CEO, Tony Hsieh once estimated that his own bad
hires have cost the company well over $100 million.
66% of employers said they experienced negative
effects of bad hires in 2012. Of these employers, 37% said the bad hire negatively
affected employee morale. Another 18% said the bad hire negatively impacted client
relationships. And 10% said the bad hire caused a decrease in sales. (A study from the
National Business Research Institute)
43% of respondents from the same NBRI study cited the
need to fill the positions quickly as the main reason that bad hires are made.
It costs $7,000 to replace a salaried employee,
$10,000 to replace a mid-level employee, and $40,000 to replace a senior executive. (From
As much as 80% of employee turnover is due to bad
hiring decisions. (From Harvard Business Review)
36% of 1,400 executives surveyed claimed that the
leading factor of a failed hire, aside from performance problems, is a poor skills match.
The second leading factor at 30% was unclear performance objectives. (Study done by Robert
41% of companies polled by Vitamin T Staffing Firm
estimated that a bad hire cost more than $25,000, and 1 in 4 said that it cost them over
SayIt Communications calculated the ROI of a bad hire
75% of the demand to hire new employees is simply to
replace workers who have left the company.