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What is the real cost of a poor recruitment decision?
When it comes to hiring time, more and more organisations are bolstering their recruitment processes with a thorough programme of interviews, relevant workplace tests and internal vetting procedures in an effort to secure the right candidate. Now that we’re coming out of recession it seems there’s even more fierce competition amongst applicants and the selection process is getting tougher for employers and candidates alike.
Despite the best efforts, when the bright new hope joins the company the potential for things to turn sour continues to exist.
Perhaps the candidate got away with intentional misdirection during the interview and it transpires they’re not qualified to competently perform the job. Or, more seriously, it may be that they failed to inform you of previous offences and after a little while in the job they’re caught attempting to defraud the company. Whatever the reason for the hiring failure, it can be a disaster, but for the most part the cost is limited to revisiting the hiring process again. Isn’t it?
If you’re lucky, this may be the case, but that’s still a considerable cost. According to the CIPD the average recruitment cost of filling a vacancy is £4,000, increasing to £6,125 when the associated labour turnover costs are included. For a senior manager role, these figures rise to £10,000 and £9,000, respectively, and if things fail to work out first time around you can expect to double these for the cost of rehiring once again.
The truth is that a bad hiring decision can result in a number of painful and costly outcomes, and some of those can be much harder to put a price on than others. Those outcomes may include any of the following;
•Attrition and wasted hiring budgets
•Theft or embezzlement
•Damaged employee relations and morale
•Endangerment of employees, clients and business associates
•Public scandals and negative publicity
Research in 2013 by CIFAS (Credit Industry Fraud Avoidance System) and the University of Portsmouth indicated that the cost of internal fraud can be significantly more than the initial amount lost. The price to the hiring organisation will include those costs which are measurable (e.g. cost of investigation, disciplinary, recruitment for replacements, etc.), but also those which are less quantifiable – things such as the impact on reputation, lost productivity due to the impact upon staff morale, and potential loss of custom as a result.
Avoid poor recruitment decisions with Key Appointments
Key Appointments is an independent recruitment consultancy which provides recruitment solutions for organisations in the Yorkshire region.
What differentiates Key Appointments is the way we build on going relationships with our candidates. These relationships are based on honesty and integrity, a genuine commitment to quality and overall customer satisfaction. Our business is built on integrity, expertise, passion and quality. We are committed to finding only the right candidates to fit your business, ensuring that the services that we provide are of the highest standard.
Talk to one of our recruitment specialists today about your recruitment needs - 0844 5044 666
See more at : http://www.hrzone.com/feature/recruitment/real-cost-bad-hiring-decision/144239
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