A survey conducted earlier this year by career builder highlighted how frequent and costly recruitment mistakes can be. Over 6,000 hiring managers and HR professionals were surveyed, with over 50% of employers in each of the 10 largest economies in the world having felt the effects of a bad recruitment decision.
The figures for the UK alone are pretty alarming:
· 62% of employers reported a bad hire
· 27% of companies say a bad hiring decision cost them over £50,000
· 23% of employers reported a loss of productivity
· 22% negative effect on morale
· 16% negative effect on customer relations
· 12% reported fewer sales
In addition to the information above, the biggest and most difficult cost to quantify is that of time and the fact that the entire recruitment process will need to be repeated again.
It’s worth clarifying what exactly is meant in the survey by ‘a bad recruitment decision’. In this case, it was deemed to be someone who turned out to not be a good fit for the job or they did not perform it well. This suggests that the bad recruitment hire was down to the candidate, when in fact, it is just as likely to be down to the company itself. But this is not about who is to blame, it's about stopping the situation from arising in the first place.
How to safeguard against unnecessary recruitment mistakes
The simple fact is you can’t provide a 100% guarantee against mistakes happening and we would suggest you err on the side of caution if a recruitment company ever makes this claim. Like any partnership in its infancy, things don’t always work out.
Invest in a Recruitment Process that Delivers Results
Most companies and industry leaders agree that talent is their number one asset, yet so few companies want to truly invest in finding new talent. Instead, companies hope that luck and a gamble (i.e. job description + job ad + CV = job) will pay off.
However, as we’ve seen from the figures above this approach isn’t working. The most effective way that a company can avoid hiring mistakes is to invest in a proven recruitment process that harnesses talent – through assessment, transition and acquisition. The key word here is 'invest', as this is the glue that creates the partnership of trust.
Half of the clients’ who contact us here at Collingwood do so after they have spent time and have, as a result, lost money waiting for that talented candidate. To avoid this conversation in the future, call one of our business unit managers for a consultative discussion about your recruitment needs today.