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You make the hire, breathe a sigh of relief and finally feel like you can stop worrying about that empty role.
Then something feels off.
Maybe it happens in the first few days or it takes a few weeks for the problems to surface. Either way, there comes a point when you start wondering whether you hired the wrong person, while still hoping things will work out.
If you’ve been there, you’re far from alone. New research from lending firm Clarify Capital found 70 per cent of U.S. small business leaders involved in hiring decisions have made a hire they later regret. It isn’t just costly, 63 per cent of regret hires hurt morale, while 13 per cent resulted in other employees quitting. Nearly half of regret hires were gone within three months, but teams still took an average of three months to recover.
With these regret hires being so common, it begs the question, what pushes people to make the wrong call in the first place?
Why bad hires happen
According to the study, in many cases, leaders were hiring under pressure.
Sudden staff departures triggered 30 per cent of regret hires, while burnout and roles sitting open too long each accounted for 17 per cent.
That pressure also led people to cut corners. Seventy-one per cent skipped at least one typical hiring safeguard, with waiting for more candidates being the most commonly skipped step.
Some even knew there might be a problem before making the hire. Twenty-one per cent saw red flags but moved ahead anyway, most commonly because they felt they didn’t have better options.
The experience also looked different depending on the size and age of the business. Smaller companies appeared to feel more pressure to move quickly and were also more likely to skip reference checks or stop searching for additional candidates. Meanwhile, more established businesses reported regret hires more often than newer companies.
Learning from mistakes
For most leaders, one bad hire changed how they approached the next one.
Eighty-eight per cent overhauled their hiring process afterward, with common changes including adding structured interview questions, involving multiple interviewers and slowing down offers.
In fact, “slow down” was the most common lesson workers took from the experience. Eighty-seven per cent now say they would rather leave a job unfilled than hire the wrong person.
Technology is becoming part of that process, too. Forty-five per cent have used artificial intelligence in hiring, commonly for resume screening and drafting job postings or interview questions. Among those using AI, 70 per cent said it has helped reduce regret hires.
But owners haven’t abandoned instinct. Sixty-one per cent still lean heavily on their gut while 83 per cent believe structured hiring makes a measurable difference.
The takeaway may not be to choose between instinct and process, but to give yourself enough time to use both.
Fast fact
Hiring hiccups
41 per cent
That’s how many hiring managers in Canada have made a regrettable hire, according to recent research from recruitment firm Robert Half Canada.
Career guidance
Personal pitch
Introducing yourself to new coworkers and during interviews can feel surprisingly awkward, especially when you’re trying to strike the right balance between sharing enough and keeping it concise.
In this Harvard Business Review article, communication coach Andrea Wojnicki recommends using a simple “Present, Past and Future” framework. Start with who you are and what you’re doing now, briefly share a relevant piece of your background, then finish with what you’re working toward or looking forward to next.
Quoted
Café culture
“Co-working alongside other café goers helped us feel connected without engaging directly,” says Maeesha Biswas, co-founder of the artificial intelligence game creation platform Chatforce. “There’s an aliveness to cafés that’s contagious and we borrowed energy from it while staying grounded in our own work.”
This article looks at how the rise in remote work has drawn more people to work in cafés, boasting benefits such as increased creativity, motivation and even connection.
Read more
On our radar
Job jumpers
Frequent job hoppers are often seen by bosses and recruiters as unreliable flight risks. The Wall Street Journal reports on new research that suggests companies may be overlooking one of their biggest strengths, which is the ability to adapt quickly.