Of Hire Importance
10 October 2017 by Justin Rush
Of Hire Importance
Justin Rush, Director at Abacus Talent Group, explains why making the right hire is so important to your company’s bottom line.
The number 3.142 is not just pi to three decimal places, it is also the multiplier the Recruitment and Employment (REC) have identified to calculate the cost of a bad hire.
Put plainly, a £35,000 -a-year offer of employment accepted by the wrong candidate, could cost your business £109,970! Justin previously read the recently published REC research ‘Perfect Match – Making the right hire and the cost of getting it wrong’ with great interest. Never before has such a scientific approach has been applied to this subject. Hold tight, because as much as we would like to, these results are hard to refute.
Around two-in-five hires are bad according to indeed.com which assessed appointments made over an 18 month period. This is just a huge number and a real indictment of the lack of quality in the recruitment process across the UK.
Around 85% of human resource professionals admit working in an organisation which hired the wrong person for the job. A number of reasons have been cited to explain this high percentage: time pressure in the recruitment exercise, recruiting from a shrinking talent pool, failure to verify skills, to a poorly equipped selection panel.
Indirect costs stemming from a bad hire can include negative affects upon staff morale, turnover, productivity, reputation and client delivery. Although these costs can vary from one organisation to the next, they can be avoided altogether if the right person is appointed. At present, the demand for qualified experienced and motivated professionals across most disciplines is significant and out-strips supply.
Recent surveys of Northern Ireland based businesses highlight this community’s concern around the availability and price point of suitable talent. Moving at an appropriate pace to recruit is therefore essential, however, sticking to the process is even more so. Here is some advice when aiming to blend a speedy and quality driven recruitment process:
Spend enough time identifying the exact needs, job descriptions and person specifications which must be reviewed an amended every time you go to the marketplace. The analogy of shaky foundations comes to mind.
Expand the talent pool, use a recruiter that has significant reach in the niche, advertise widely (not just in Northern Ireland). utilise social media channels. offer referral bonuses to staff, etc. One size does not fit all.
Involve your best people in interviews, not only because they can assess the technical ability of applicants, but because it will allow senior staff to benchmark the talent available at the defined price point. Either, appoint the best person at the budget or increase your budget.
Due diligence, just does it. If you don’t you deserve what you get.
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