08 Jan THE COST OF HIRING THE WRONG EMPLOYEE
The importance of hiring the right employee is crucial to any business and when a company gets it wrong it can have a hugely negative and expensive impact.
Firstly, there is the cost involved in recruiting – on average, it costs a company approximately 25% of the employee’s annual salary in fees, plus the time involved interviewing the candidates.
Then if the perfect candidate doesn’t come through the door – you’re not completely convinced by any of them – you’re under pressure to choose the best of a bad bunch. Often hiring managers have spent so much time reviewing, assessing and interviewing candidates, they feel they must move forward and fill the position.
So, the best of the bad bunch is hired, so we can move on – right? Unfortunately, the new hire’s skills are not up to scratch and they need training. Before long, issues within the team arise – workload is building due to the extra training the other team members are having to do. Morale takes a dip, as does productivity and before long you are sitting in meetings about the issues within the team. Time possibly better spent on getting it right in the first place?!?
So, do you struggle on with the training and hope things get better or cut your losses and exit them from the business? Either way it’s a timely and costly exercise which is painful and very emotional for the about to be ex-employee. They haven’t really done anything wrong – they have done their best, and in hiring them you made them believe they could do it. They have given up a previous job to join your company, which has been a short-lived experience. Making that decision is something that will tug on any decent Managers heart strings!
This is why it is so important to get it right first time!!! Build a relationship with a recruiter you trust, who knows your business and the type of people you like to employ. Make time for your recruiter, invite them into your offices to see your set up and culture for themselves, and by investing a little bit more into engaging with a recruiter as a proper business partner will yield massive benefits in the longer term,