As Q4 approaches next week and we look toward 2025, organizations need to take a hard look at their hiring strategies. Securing the right talent is no longer just about filling roles—it’s about ensuring new hires will stay, grow, and deliver the results your business needs.
Hiring the right talent isn’t just about filling a position—it’s about securing the right fit who will stay, grow, and contribute meaningfully. The cost of a bad hire can add up quickly. According to the U.S. Department of Labor, the average cost of a bad hire is at least 30% of the employee’s first-year earnings. But when indirect costs are included, such as lost productivity and team disruption, the total cost can range from 1.5 to 3 times the employee’s salary. Let’s break it down:
For a $100,000 salary, the true cost of a bad hire might look like this:
- $10,000 – $15,000 in taxes
- $10,000 – $20,000 in benefits
- $3,000 in liabilities
- $2,000 – $5,000 for training
- $1,000 – $2,000 in administrative costs
These direct costs alone can easily add $26,000 to $45,000, or 26% to 45% of the salary. When you add indirect costs like lost productivity, lost sales, recruiting expenses, and team disruptions, the total cost can range from $150,000 to $300,000, or 1.5 to 3 times the salary.
Moreover, with 30% of new hires leaving within the first 90 days, the financial impact can multiply quickly. It’s clear that minimizing hiring misfires should be a top priority, and data-driven tools like PXT Select® and Everything DiSC® are essential to hiring the right people and setting them up for success.
Additionally, sales professionals must have the proper training. Without understanding the buyer’s process or having the necessary skill set to sell, turnover in sales roles can be even more significant. Investing in the right sales training is crucial to ensuring sales professionals are equipped to engage with stakeholders effectively, drive results, and reduce costly turnover.
Let’s break it down further:
- 6-9 weeks is typically spent on hiring, reviewing resumes, interviewing candidates, and negotiating offers.
- Meanwhile, lost productivity is a constant as new hires learn the job, and the team adjusts.
- And when a new hire doesn’t work out, organizations lose valuable institutional knowledge—the insights, processes, and experience that contribute to smooth operations. This knowledge gap can disrupt team performance, slow down projects, and create inefficiencies, further compounding the cost of a bad hire.
Worst of all, 30% of new hires leave within the first 90 days, adding further costs for onboarding, training, and eventually replacing the employee—all while productivity remains stagnant.
Can you afford to hire wrong as 2025 approaches?
Here are five tips to help avoid costly hiring misfires:
- Use a hiring assessment tool like PXT Select®: This tool integrates data-driven insights into your interview process to assess a candidate’s cognitive abilities, behaviors, and interests. With PXT Select, you can align the right person with the right role, significantly reducing early turnover.
- Set performance benchmarks: To truly optimize your hiring process, analyze the traits of your top performers and use them as benchmarks for future hires. PXT Select helps identify the characteristics that contribute to success, giving you an edge in hiring.
- Clarify expectations early: Ensure direct reports have a clear path from day one. Setting clear expectations leads to greater accountability, improved performance, and stronger engagement, helping new hires contribute more effectively from the start.
- Leverage Everything DiSC® for better communication: Implement DiSC assessments across your organization—not just for new hires. DiSC helps teams better understand their personalities and how they interact with others. Leaders can mentor, coach, and delegate more effectively, improving team dynamics, communication, and overall performance.
- Provide structured training and coaching: Once you’ve hired the right person, you need a solid plan to develop their skills. Our sales training programs ensure sellers understand their stakeholders, prepare thoroughly before any engagement, and tailor their approach to the buyer’s challenges and buying process. Incorporating DiSC® Sales into your training helps sellers understand their own selling style, adapt to the customer’s buying style, and tailor their questions to drive results. This leads to more meaningful conversations with your customers, building relationships, and achieving higher success rates.
As we move into Q4 and look toward 2025, there’s no better time to refine your hiring process. Leveraging tools like PXT Select and Everything DiSC can help you hire smarter, develop stronger teams, and avoid costly misfires.
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