Consequences of Ineffective Recruitment And Selection

Posted on April 2018 by Sarah Di Pietro
Consequences Of Ineffective Recruitment And Selection

​Having an inadequate recruitment and selection system can cost your company money in more ways than one. Businesses rely on their employees to be successful, so hiring the right people is essential for achieving overall goals. There are numerous repercussions of ineffective real estate recruitment and selection. More than just losing profit from lack of productivity, having the wrong people in your employ negatively affects many aspects of daily business operations.


A huge percentage of the position’s annual salary is often used for staff replacements. These costs may include job posting fees, on-site or off-site training expenses, and more. If you hire a person you didn’t realize was unsuited for a salesperson or account manager job, then the company may suffer great losses for sales not made or clients lost. This is especially dangerous for small companies and start-up businesses. Hiring the wrong person could be the most significant thing that brings you down.


When you hire the wrong person for a position, it typically results in having to do the whole process over to quickly refill the new vacancy. This results in wasted time, money, and energy during the downtime, as well as additional recruiting and training expenses. Having an open position hurts the company in many ways: loss of productivity, frustration about repeated training, and inability to effectively progress with business initiatives.


A wrong hire resulting from an ineffective recruitment and selection process can also hurt the teamwork and productivity of good employees. This is less likely to happen for upper management employees, but lower-level workers may have to take up that person’s slack and they may feel overworked, frustrated, and underappreciated. Also, bad hires often instigate negative attitudes in the workplace. Additionally, since bad hires affect morale, good employees may leave the company, creating an even greater turnover problem.


Good employees may lose faith in their management team when they notice consistently poor hiring decisions and managers may lose confidence in their own abilities if they cannot train or motivate the bad hire. Terminating such an employee may result in feelings of guilt and stress, especially if they were involved in the hiring process.

Hiring a new employee always carries an element of risk and the effects of hiring mistakes can be huge, with significant direct and indirect business consequences. So try to keep a discerning eye out during the recruitment and selection phase, especially for candidates who seem to be less than what they claim to be and those who are only using you to get a pay raise from their current employer. This will help you avoid paying top dollar for unqualified property managers in the future.