Hiring the wrong individual for your company is costly. Last year, a CareerBuilder survey found that 42 percent of businesses said hiring the incorrect person cost the company at least $25,000, while 25% of businesses reported losing out on at least $50,000. 

Bad hires can even happen to the best of companies, whether they're renowned brands or Fortune 500 companies. The costs of making a bad hire can be exponential in both time and money. The related expenses can quickly and unexpectedly eat into business cash that is budgeted for other things. To avoid the costs of making bad hires, it may be necessary to invest in modern technologies and professionals with expertise and experience in hiring protocols. 

Here are five ways a company invests in hiring staff members: 

Recruitment Process

The recruitment process is the initial phase in the overall hiring experience. This element consists of the hiring manager or head of HR identifying an employment vacancy, outlining job responsibilities and description, creating an application, placing a job advertisement and database sourcing. This can be a time consuming process.

Hiring Process

Now that you have completed the recruitment process, it's time for the company to start hiring. This step involves reviewing job applications, interviewing the selected candidates and , performing background and reference checks. Again, much like recruiting, this does take a lot of effort and time. 

Training

Once you have chosen a person for the job opening, the next step in the process is to train that individual. It could take one day or it could several months before the chosen one understands the day-to-day intricacies of their specific position. The trainer may have to spend more time instructing the recent hire, which could take away time that would normally be focused on other business activities. 

Lost Productivity

The business diminished its productivity levels and lost money as soon as the job title was open because there wasn't anyone to fill this job. Moving forward, the company is still going to lose money because a novice staffer will have to take time to complete daily to-do lists. If you haven’t hired the right person, then you will probably have wasted your resources because this person will more than likely be let go and then their responsibilities will be given to other employees. 

Supervision

It's expected at some point that a supervisor will have to check in from time to time on the new addition. However, a poor hire may need nearly one day per week worth of supervision, according to a recent survey of chief financial officers (CFOs). Akin to the trainer, a supervisor could have spent their time better honing in on other pressing matters. 

How can a company overcome these hurdles? Here are five ways to solve this problem and help prevent or minimize wasting money on an inadequate hire. 

A Dedicated Hiring Department

The reality is, most small businesses don't have a dedicated recruiting or hiring department because this does require greater resources. However, in some cases it may be cost-effective to establish a department dedicated to hiring and recruiting. 

Outsourcing Recruitment

If your firm lacks the expertise, finances and resources to maintain a hiring department then you always have the option to outsource this recruitment initiative. Your business can partner with an HR professional or search for recruitment companies online. This is a way to minimize costs, while also helping to ensure that your business finds the right employees. 

Take Advantage of Psychometric Testing

One of the biggest trends in the world of HR is using psychometric testing. This psychological measurement evaluates knowledge, skills, attitudes, personality traits and educational attainment. The purpose of this type of testing is to assess the candidate's suitability within the firm. Although this has become popular, businesses still have to take into account legal compliance. 

Outside the Box Interviewing

Generic questions for employees, such as "What are your biggest strengths?" and "Where do you see yourself in five years?" are becoming a thing of the past. You may have read about how some companies are taking a different approach to interviewing by thinking outside the box. 

For instance, Chipotle asked a candidate "If you could be any supervillain or superhero, who would you be?" Aksia inquired, "If you had a machine that produced $100 for life, what would you be willing to pay for it today?" Dropbox questioned, "If you woke up and had 2,000 unread emails and could only answer 300 of them, how would you choose which ones to answer?" 

Here are a few tips to think outside the box when you conduct interviews: 

• Candidates' hobbies, leisure interests and personal goals.

• Insights into hypothetical dilemmas.

• Ask applicants about various ethical and moral quandaries.

• Solutions to problem-solving questions that can be found in a high school math textbook.

Use Various Recruitment Tools

•   View applicants' social media accounts to find out their backgrounds and references.

•   Determine if candidates meet the minimum criteria as highlighted in the job ad.

•   Perform a video or telephone screening to get a sense of their personality.

•   Forget references because experts say these people wouldn't understand their effectiveness within your company.

Calculating the metrics for the final crop of interviewees is needed. How many of them should actually be there? Do they fit into the company culture?

This Could Be Expensive

Instituting a detailed hiring initiative can be a costly endeavor. But it's more expensive to take on a bad hire, especially for a small business. A business cash advance is a funding option that can help solve this dilemma. It's a short-term funding solution that can be used to develop a very talented labor pool. This can help your business now and in the future. As talent management continues you will be prepared for effective succession planning.

Financial services firms like Quikstone Capital Solutions can provide a business cash advance to small- and medium-sized businesses (SMBs) that want or need to invest in the company. This is an excellent way to expand the business to new heights. 

Check out Quikstone Capital Solutions and apply for a business cash advance today. The right hires will grow your brand.