We’ve established that regardless of the methods used, hiring a new employee can cost a significant amount of money so what could be the wider financial impact of getting it wrong?
As well as the external and internal costs that you have calculated above, the hidden cost of a bad piece of recruitment also include;
- Resources spent on onboarding and training
- Lost productivity of other team members
- Possible increased staff turnover as an indirect result
- Threat to employer brand
Hiring mistakes can occur for a variety of reasons and Richard Branson himself says that when it comes to things going wrong in business, you shouldn’t blame the people, you should blame the process.
Before recruiting, it is essential to ensure that you have a very clear idea of the role you want to fill and the skill set and type of person that would be required to fill it. If you go into the scenario being vague, you are running the risk of getting it wrong down the line. What’s more, if you don’t know what the role requirement is, how can you map out the correct skill set and how can you test in your hiring process that the candidates meet the requirements?
It has been reported that four in ten employers admit that their interviewing and assessment processes should be improved which means a staggering number of companies are “winging it” when it comes to hiring. It is worthwhile investing time in creating a robust interview process and training the hiring managers on carrying this out effectively.
If you know there are flaws in your hiring process but not sure where they may be, check out this blog for ideas on how to recruit effectively.