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Recruiting the wrong person can cost more than you think!

In today’s competitive marketplace, businesses need to make sure they get value for money in everything they do. Employing the wrong person for a role is a costly mistake to make.

The cost implications of recruiting the wrong person are extremely high.  Surveys show that recruiting the wrong person can cost a Company 2 ½ times the basic annual salary of the employee. 

Not only have you got the salary you’ve paid to consider, you’ve also got the cost of time spent interviewing the candidate and then the cost of making them redundant.   Add on the internal time taken by other team members to cover the position whilst recruiting, the decision-making over an exit strategy for the poor performer, team morale and disruption, and the costs become critical.

In addition, once the bad hire has been resolved, the recruitment process has to be repeated, incurring more costs and internal time. Any training and development spent on the outgoing employee will also be lost, and then there’s training and development on the replacement employee which will need to be undertaken.

This is why it is important to invest in the recruitment process up front.  Not only does employing the wrong person have serious financial implications, but it can also have an impact on other staff, and the organisation and their brand as a whole.

Before companies begin the recruitment process, there are a number of things to consider, including;

  • Undertaking a thorough evaluation of what qualities and skills are required of a new recruit.
  • Think about who is going to undertake the interview process, are they trained to conduct interviews, do they know what questions they are going to ask?
  • Evaluate what are the key competencies required for the job, and
  • What is the culture and fit of the organisation.

Recruiting is a lengthy process and in a small business, quite often the Business Owner or Manager is trying to “fit the recruitment process in” whilst managing the day to day functions of the business. The most common mistakes companies make when recruiting is;

  • Not taking the time to complete the process thoroughly
  • Not undertaking a minimum of two verbal Reference Checks with previous qualified referees
  • Not measuring and evaluating the candidates skills effectively, to ensure the person has the required skill level to effectively carry out the role to their maximum potential, and
  • Relying too much on gut instinct

Are you making some or all of these mistakes?  Let us help you eliminate at least one of these, Click here to claim your F.R.E.E. Skills test.

People are an organizations biggest asset and they are the largest cost to any business. Underinvestment in other crucial assets such as technology or machinery would be seen as poor commercial decisions, so why would businesses not invest in their recruitment processes and ensure they give themselves the maximum opportunity to get it right.

Most Candidates are interview savvy these days, which means you need to invest more time and  “dig a little deeper” when conducting interviews.  Remember, if it’s too good to be true, it probably is!


Copyright © 2012 Brook Personnel. All Rights Reserved.  Contact Lynne on 07 5510 3700.  This article may not be used without the prior written consent from the author. See below for more details.

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F.R.E.E. Skill test:  Let us make sure you don't recruit the wrong person!
One of the most common mistakes companies make when recruiting, is NOT conducting a skills test, Click here to claim your F.R.E.E. Skills test.


 


Author: Lynne Brook, Brook Personnel