Whether you are a multinational or an SME, it’s almost a certainty that you’ll recruit a new employee in the next 12 months. It’s widely regarded that the total value of a successful recruitment campaign is between £27,600 and £50,000 (including salary of course!), but what happens if recruitment is not successful – what are the cost implications of getting it wrong?
The REC estimates that a poor hire at Mid-Manager level, with a salary of £42,000 can cost a company upwards of £100,000! When the costs are so high, why is this a recurring problem?
A third of employers say bad hires occur because the pool of talent available to them is too small. Does this sound familiar? Kevin Green, REC Chief Exec said “When candidates are scarce, employers can be tempted to make hasty hiring decisions. While being fast is sometimes no bad thing, if it leads to poor hiring decisions it can be very costly”.
Additionally, many companies underestimate the true cost of hiring the wrong person. 1 in 3 decision-makers whose business hired the wrong person think it cost their business nothing and a further 1 in 5 decision makers do not know how much a bad hire costs their company.
So, what can you do to avoid hiring the wrong person?
Implement soft skills assessment tools
Bad hires aren’t always people who can’t do the job, sometimes they are people who aren’t a good fit for your company’s culture. Try incorporating some soft skill assessment tools into your interview process to ensure you and your candidates values are aligned.
Properly induct new recruits
Allocate a proper induction period for all new recruits to get to grips with all aspects of their new role. A little bit of investment early in their new career can save a lot of costs further down the line.
Promote a flexible and inclusive workforce
Use recruitment techniques which aim to attract talent from different backgrounds and cultures.
Increase your pool of prospective candidates
Use a multifaceted approach to recruitment. Posting an advert online is great, but how many people are actually going to see it? By using a range of different techniques to promote your open vacancy you increase your reach and subsequently increase the likelihood of finding the right person.
If any of the above sounds familiar or you want help implementing the above steps – especially increasing your talent pool, in order to avoid making that costly mistake, then we at Stroud Resourcing would love to speak to you about your recruitment plans and how we can help you find that elusive “perfect” candidate.