It has been no secret that hiring the wrong person can cost you more, not only in your time and resources, but your money too. The hiring process can be a lengthy one to ensure the right candidate is found to ‘fit’ the job role. We have recently discussed the importance of company culture and expressing how key it is to include this within your recruitment process to not only find someone with the right skills but someone who agrees and ‘fits’ with your company culture.
A recent report from Recruitment & Employment Confederation (REC) has found that businesses are failing to hire the right candidate two out of the five times. The cost for this is substantial and not just to the bank balance but includes training, lost productivity, and increased staff turnover, which all are bad for business.
The report conducted by REC found that over 85% of HR decision-makers admitted that their organisation has unfortunately made a bad hire and that 39% of employers stated that their interviewing and assessment skills for those they see need to improve.
The results also found that 33% believe that hiring mistakes cost their business nothing, when in fact, a poor hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000 – Wowza!
In partnership with Indeed, the REC has created a report to promote good practice recruitment to UK business in all sectors.
REC Chief Executive, and Member of Recruitment Grapevine’s Advisory Board, Kevin Green, comments: “Getting recruitment right is even more important during a time of economic uncertainty because businesses need to ensure they’re not wasting money. Our calculations show that UK businesses are wasting billions every year because of the volume of hiring mistakes being made.
“Shockingly, we discovered that employers are completely underestimating the financial impact of getting recruitment wrong, and not learning how to improve.
“This report outlines the hidden costs of making hiring mistakes, and outlines how employers can implement a robust selection process to minimise this risk and improve performance.”
Bill Richards, UK Managing Director, Indeed, adds: “Hiring is one of the most important aspects of business growth, but one of the most costly if done wrong. In today’s tight labour market there is a full-blown battle for talent, and employers need help navigating the terrain.
“The good news is that when it comes to connecting candidates to open positions, search engines like Indeed have emerged as a powerful tool for employers. Our mission is to help people find the right job, and the insights raised in this report will help hirers source and retain candidates to meet their business needs.”
So please, when hiring a new employee, firstly be sure of what you are looking for in the person you are recruiting. Have a list of skills and traits written down so this will help you during the interview process to not get overwhelmed and sidetracked by those who you meet who may not be suitable. Don’t rush into recruiting someone if you are desperate to fill a position. Be sure to take your time to meet a number of candidates that meet the skills required, but will also fit into the current company culture. A good idea is a trial morning/day where the candidate is invited into the place of work to meet the people, try a variety of small tasks to see how they get on. And finally, always trust your gut instinct – 99% of the time it is right.