According to figures from CIPD (Chartered Institute of Personnel and Development) the average cost of recruiting the wrong person into a job role is £8,200 rising to £12,000 for senior managers and directors.
The Cost of a Bad Recruitment Decision
Of course, hiring a new member of staff will always carry an element of risk. Most companies have unfortunately had experience of employing someone who ‘on paper’ seemed to be just the person for the job but who subsequently turned out not to be. The reasons for this will vary from business to business but may include things like poor attitude, inability to produce the expected standard of work, or just not fitting in and working well with colleagues and customers. The effects of making this mistake can be huge having a detrimental effect not only cost-wise, but on other members of staff too.
Perhaps the most noticeable cost to the business of making a recruitment mistake is the immediate financial one. Not only will it have cost to advertise the position, go through CV’s and interview processes, having an employee not doing a good job can be costly too. Added to the financial costs there is also the disruption to other employees who may have to ‘pick up the slack’ of an inadequate team member which can lead to low morale and a dip in productivity.
The reasons for making a bad hiring decision are usually as a result of the recruitment process itself not being done as it should be. It may be that initial advert for the position did not attract the right people to apply, interviews and vetting procedures may not have been up to scratch or assumptions made because of past employment history. Just because a candidate has held a similar role, doesn’t make them right for your company!
Given how high the cost of hiring the wrong person can be, it’s a good idea to invest in your business’ recruitment process to minimise the chance of mistakes being made. More and more companies are choosing to outsource this take to external HR specialists like solved hr.
Get it Solved!
Solved hr have the resources and tools to look carefully and objectively at the needs of your company and those of the candidates, using psychometric testing, for example, to ensure candidates are a good fit for your company, and vice versa, making sure you get the right person for the job, the first time around.
If you would like to avoid the costs associated with making a bad recruitment decision, call solved hr on 07700 900024 and let us take the stress out of recruitment for your business.