TRANSEARCH: The High Costs of Hiring the Wrong Leader
Hiring the wrong person for a leadership role can be extremely costly, according to a study by economist Eileen Appelbaum and sociologist Ruth Milkman. The study found that a bad hire can cost up to 213% of a c-suite level employee's salary, and this figure may be even higher as companies recover from the pandemic.
One solution to avoid this pitfall is to consider retaining an executive search firm that has consultants who specialize in specific industries, which can save organizations months of work and a significant amount of money.
The impact of a bad hire includes
- decreased productivity and morale
- loss of employees and customers
- damage to industry and consumer reputation
- weakened brand
- increased stress levels and burnout.