Staffing Agency Insurance: The Cost of a Bad Hire

Staffing Agency Insurance The Cost of a Bad Hire

Staffing Agency Insurance: The Cost of a Bad Hire

As a staffing professional, it’s your job to make a good hire. You pore through resumes, screen candidates, talk through options with employers, all to find the candidate that is the right fit for the job. You know the importance of making a good hire. But how much do bad hires actually cost a company?

According to Employee Benefit News, a CareerBuilder survey released said more than half the employers in the world’s 10 largest economies reported detrimental effects from hiring the wrong person.

It goes beyond a candidate simply being a bad fit and the pain of firing & hiring a new employee- a bad hire can have a significant negative impact on a company. In the United States, 27% say a bad hire cost them over $50,000. It can have effects across an organization, including wasted time and resources, missed sales opportunities, strained client and employee relations, potential legal issues and resources to hire and train candidates. In particular, American companies noticed an impact in employee morale after a bad hire.

For the staffing industry, industry like this is important in two distinct ways. One, it shows the value of the staffing industry as a whole. Recruiters can help companies save time, guarantee a hire, find employees quicker and most importantly, they work with employers to find qualified candidates for the job.  Hiring mistakes can be costly and time consuming. It also shows the cost of mistakes. While staffing industry has the highest level of expertise, they can still make mistakes. And hiring mistakes open a staffing agency up for liability exposures. Make sure your staffing firm is covered with the proper insurance.

World Wide Specialty Programs has always had a singular purpose – to design, develop and provide staffing insurance programs for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Contact us today for more information about our staffing agency insurance solutions. (877) 256-0468.