The true cost of poor recruitment

The true cost of poor recruitment

 3 Mar 2020

Tags:
    #pauseforthought #truecosttohire #recruitingpartners

Do you know the true cost of poor recruitment?

Recruitment is much more than just matching a skillset to a vacancy. Our role is to find the right people, with the right skills, the right experience who are the right fit for the company – we know ignoring just one of the elements can result in a bad hire, and that can be costly.

Whilst there are different models for how the recruitment industry charges for their work, the cost of the recruitment fee is just the tip of the iceberg when it comes to the true cost of a bad hire.

A report from the Recruitment & Employment Confederation (REC) revealed that more than a third of companies aren’t aware of the business cost of hiring mistakes. However a poor hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000 when consider the cost of training, lost productivity and more.

The wider impact

Hiring the wrong people can not only hit the bottom line of the business, it can impact the existing team too. The wrong attitude, temperament, or skill set can have a huge impact on the collective morale of the wider team, which in turn impacts productivity, and eventually risks increasing turnover for the business, which can not only be costly but can be damaging to the company reputation and employer brand.

How to avoid this

Consider what your company culture currently looks like, this and the future business strategy should be a clear guide when you’re planning your workforce.

Re-look at your hiring model, and how you’re looking beyond the immediate skill set needs.

Partner with a recruitment specialist (obviously we would say this) but find someone that understands your sector, understands the roles you’re recruiting for, and spend time with them helping them to understand your business and culture. A small investment in time at the beginning will save time and money down the line.

Comments

Currently there are no comments. Be the first to post one!

Post Comment

*
*
*