The cost of a bad hire - potential impact on a business' finances

When planning a recruitment, do you consider the implications if the successful candidate is not right for the job?

Success in hiring is about making decisions, so getting it right is important. This is even more imperative in the current jobs climate, considering the scarcity of candidates and skills shortages, when the implications of making a bad hire is not just a momentary glitch in time, but can actually have a financial impact on your business.  

In a recent report from the Recruitment and Employment Confederation (the REC), 85% of HR professionals surveyed, admit that their business had previously hired the wrong person for a job; it is estimated that the cost of a bad hire can be triple that of the candidate’s salary. Costs such as recruitment fees and money spent on training can be easily defined; however the less obvious cost to staff morale, turnover, productivity, business reputation and objectives are harder to quantify and easily overlooked.

Considering that the most valuable asset of any business is their employees, why do organisations under-invest and bypass important stages of the recruitment process? Some may say that this is through the need to fill a position quickly, or that they are only able to access a small pool of talented people, but considering the potential impacts, are these ‘excuses’ valid?

When selecting the successful candidate, employers are the ultimate decision makers and must work in close collaboration with their HR teams or Recruitment Organisations in order to safeguard a robust selection process. Ensuring and maintaining a vigorous procedure will not only allow you to attract and retain the best person for the job but also mitigate against the potential financial risks of making a bad hire.

Change Agents UK have been recruiting early careerists since 1996 and as members of the REC, we are certified to uphold the thorough and rigorous recruitment of qualified candidates. We work with our clients to fully understand their requirements and have access to a network of 12,000+ talented and enthusiastic professionals, all actively looking to work in sustainability and for ethical businesses.

At each stage of our recruitment process (shortlisting, telephone interviews and facilitating the formal interviews) we have the client’s needs in mind; ensuring that we only put forward for the role candidates who have the correct skills, experience and attitude but also fit with the team culture and values of the organisation. We bridge any skills gaps through the Skills Development Programme and 1:1 Professional Coaching. The benefits of recruiting through us are undeniable…

“I have used Change Agents UK for a number of years and we have always been impressed with the service they provide, the quality of graduates they help us appoint and their commitment to each graduate’s development and employability.” Phil Riley, Energy Manager, The University of Sheffield

“Employing a recent graduate through Change Agents UK is a great way of guaranteeing a group of well qualified, motivated and suitable candidates for a new position. Not only do you get a great person to work for you, you also give that person some invaluable work experience to help them in their future career.” Vanessa Kelly, Northamptonshire Waste

Getting it right at every stage of the recruitment process

Below is a table outlining the most common hiring mistakes and key action points to mitigate a bad hire.

 

Ref:The Recruitment & Employment Confederation