Effects of Bad Hiring in Europe

As the worldwide employee shortage is worsening, employers are feeling rushed and making vast and poor hiring decisions. According to research, more than half of employers settled for employees that do not match the job sufficiently, which not only increases costs but also hampers the company's growth. North American companies expanding to Europe have to deal with more complexities as they have to face the additional challenge of different labor laws and policies that might even worsen the consequences of bad hiring decisions.

What are the consequences?

It is estimated that replacing an individual employee can cost an employer one-half to two times the employee's annual salary in most cases, and up to 4x salary for specialized staff. Which components contribute to these costs? Employee turnover directly increases recruitment and training costs, but also has indirect costs on lost productivity, decreased colleague engagement; decreased customer service, and an impact on the company's overall culture.

This issue especially affects companies that hire internationally, since different labor laws and regulations can even increase the costs caused by longer notice periods for example. Therefore, making improvements in the first stages of hiring/recruiting and onboarding employees is crucial for your business.

How can you prevent bad hiring decisions? 

Having to spend money on new hires is something you can't avoid. However, you can avoid making poor hiring decisions that will create a negative feedback loop, ultimately resulting in high turnover and you hiring for the same position over and over again.

Maybe your job description is attracting the wrong people. Try to involve the team you are hiring for in the writing process and find the right balance of what you ask from candidates. After that first step is fixed, the hiring process should be smooth, quick, and frictionless. Otherwise, you might lose qualified candidates to competitors. Implementing automation tools for administrative tasks can help you in this process. When it comes to interviews, make sure your hiring managers are trained properly and know how to ask questions and know their input. Conducting multiple interviews until they are certain will save money in the long run. Lastly, in the competitive labor market offering good compensation is important for keeping the best candidates. Are you hiring in Europe and need help improving your hiring process? With EuroDev, you can hire in Europe fast without worrying about setting up an entity. You will stay compliant in every European country of your choice, and you will have an excellent team experienced to offer the necessary HR support.


 - Hiring is hard these days due to the tight labor market. Especially in a foreign market
 - Consequences of bad hiring are increased costs, lower productivity and hampered growth
 - Prevent bad hiring by:
  1. Improved job description
  2. Smooth hiring process
  3. Trained hiring managers
  4. Multiple interviews with multiple decision makers to prevent bias
  5. Good compensation


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About EuroDev

EuroDev, established in 1996 with offices in The Netherlands, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 500 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.

Source: Forbes, zdnet

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