Why a Bad Hire is an Expensive Mistake

Recruiting is a time consuming and involved process, so amidst a current climate where time is precious, teams are leaner than ever and the bottom line is under constant scrutiny, there’s a real need for HR and recruiting managers to ensure that they are placing the right people in the right roles.
In a recent study by CareerBuilder, the figures surrounding the realities of hiring the wrong person are concerning to say the least. The survey looked at the experiences of over 6,000 hiring managers and HR professionals, and as a headline, in the UK alone 62% of employers reported experiencing a bad hire.

The cost implications

Look to the CIPD and they’ll tell you that their estimation of the average cost of making a bad hire is £8,200, going right up to a staggering £12,000 in the cases of senior managers and executive recruitment services for directors. Consider these costs in relation to a significant 62% of managers feeling that they’ve been in this situation, and the implications are astounding.

CareerBuilder’s report investigated a range of perceptible and less tangible effects of a bad recruitment decision, from a loss of productivity to the negative impact it has on team morale. Not to mention the bearing it can have on customer relations and in turn, sales figures. In fact, almost a quarter of those surveyed in the UK reported a loss of productivity, and 22% indicated that the ramifications on morale were negative.

Of course, the harder elements to define lie within the time taken to recruit. Recruitment processes involve expensive, senior staff members who will not only be involved in the initial stages of hiring a person, they may also be included in the exit process, while the expense of training is another consideration to add to the mix.

Simplify and clarify your recruitment process

It’s fairly easy to look at the results from the CareerBuilder’s survey as a bleak insight into a vast swathe of bad experiences. However, there are key learning points to be taken from these findings, and measures that can be put into place to effectively manage this risk to a certain degree.

The fundamental rule to safeguarding your recruitment process is to have a clear procedure in place. Ensure that your candidates know what your company is about and have a full insight into the culture, and provide realistic and accurate information on vacancies.

Choose a reliable partner or source when it comes to finding your suitable candidates. The most obvious example of this is if you’re looking for a specialised or niche role demanding certain experience and skills. But regardless of the vacancy’s requirements, having a suitable recruiter or recruitment source available can make a real difference when it comes to quickening the process and ensuring a good level of candidates.

Keep the process smooth, the easiest way to lose potential candidates is through a lack of attention when it comes to running through the recruitment procedure, and maintaining engagement with your list of potential employees at critical points throughout the process.

The real value of dedicated recruiters, like executive recruitment firms is in their experience and know-how when it comes to hitting all the right touch points and avoiding a costly mistake. Ultimately, it’s a way of ensuring that your recruitment needs are being met, and the best people are being put forward for your vacancy. After all, one of the key focusses of HR professionals and business leaders today is on talent. So ensuring that you’re sourcing the best people for your roles could make all the difference not only to the longevity of the partnership, but to the performance of a company on the whole.