HOW MUCH DOES IT COST YOU TO HIRE THE WRONG PERSON?
At HRG we recently had a role we were trying to fill for a client in professional services. It is in a very tight market and a candidate presented with what looked to be a great skills and potential culture fit. However, at interview our trained consultant wanted to gain more insight into their background. We didn’t follow the usual reference procedure of most SME’s or others in our game; just call the one person at the bottom of the resume. We dug a little deeper and used our network to gain valuable information to assist with this potential hiring decision.
We walked away from proceeding with this candidate and in the end saved the client some potential employment headaches.
If it’s not a great fit, then HRG are happy to keep working to find the right person. Recruitment for us is not all about getting paid.
Our work is really important and we take pride in it, sometimes the true value is in the one you don’t fill.
In SME’s hiring the wrong person will be a very costly exercise. The effects are multilayered. We’ve delved into this to help you understand the impact it can have on your business.
Many business owners and managers don’t fully appreciate the financial burden the wrong person can have on a business. The Australian reported that a bad hire can cost a business 2.5 times the employee’s salary. So, an employee earning a $60k salary can end up costing $150k as a result of salary and benefits, then the double handling of necessary advertising, time consuming interviewing and recruiting, and education and training
If your new hire isn’t the team player you’d hoped for, you have a problem. A fragmented team is catastrophic in terms of staff morale. If a new employee is failing to meet expectations, the other teammates often have to pick up the slack. There is potential for this situation to lead to bitterness amongst the team. Similarly, if the new hire is simply not a good cultural fit, this can lead to tension and unrest.
Productivity is reliant on harmonious teams. A bad hire can expose you to being unable to service your clients to the standard they expect while at the same time other team members are stretched to capacity with a heavier work load. The effects of a bad hire can extend beyond their tenure too – it often takes time for remaining employees to recover from a “bad egg. A recent survey on the topic of recruitment, Smart Company reports that 21% of respondents had “lost clients or good staff members” as a result of a bad hire they had made.
If you are a small business that struggles to get this right, refine your recruitment tactics today to make the right investments. Start a conversation with Hunter Recruitment Group today.
WRITTEN BY LANEY JORDAN RECRUITER/RESOURCER – HRG