The Bureau of Labor Statistics reports that someone who doesn’t fulfill the role can cost a business 30% of the employee’s first-year earnings. This drain on resources can extend beyond dollars, affecting workforce morale and productivity.
But when companies approach hiring strategically—in a way that’s intentional, structured and measurable—they observe real benefits to their top and bottom lines. One study found that skills-based recruiting practices can drive stronger retention of new hires.
The impact of poor hiring decisions is why the hiring platform Greenhouse helps employers that use its software get hiring down to a science. According to Greenhouse, to really capture financial value from hiring, companies need buy-in from finance leaders in particular. “CFOs have a responsibility—and are uniquely positioned—to partner with HR teams to help allocate and align people resources for optimal impact,” says Eric Muhlheim, CFO of the open-source software community Mozilla.
Explore five data-driven insights that reveal why it’s crucial for CFOs to get involved in talent strategy, and scroll on for advice from Muhlheim and Greenhouse CFO Paul Todgham.
What’s the cost of a bad hire?
By Shubham Agarwal | Illustrations By Justina Leisyte