One-third of employers in Ireland have reported spending more than €10,000 to fix a bad recruitment decision, according to survey data from Irishjobs.ie.

The survey data also showed that businesses that made a bad hire reported a loss of revenue (21%) as well as reduced productivity (86%), poor team morale (56%), compromised work quality (48%) and workplace conflict (33%).

According to employers, some of the solutions cited to fix the mistake include investment in training or professional development (17%), or movement to a different department (8%). However, 47% of employers decided to let the bad hire go.

Irishjobs.ie data showed that a common cause of the bad hire is relying on referrals from friends or colleagues, as 22% of employers cited this as the source of their mistake. Furthermore, 27% of employers reported that they made their hiring decision due to a lack of more suited candidates.

“Understandably, people place a high value on the recommendation of someone they respect,” Orla Moran, General Manager of Irishjobs.ie told businessworld.ie. “But, unless they’ve worked closely with the person in question, they won’t have great insight into whether they fit the culture of your organisation."

“While referrals can play a significant part in the hiring staff, following a diligent recruitment process that opens the door to all qualified candidates is crucially important to find the right fit for the role,” Moran said.