Of those, one in three who hired the wrong person as a manager, director, or in a senior official role think it cost their business nothing.
However, as the report shows, the true cost of hiring the wrong person is actually higher than you would expect.
According to the report, ‘Perfect Match: Making the right hire and the cost of getting it wrong’, the aggregate cost of taking on the wrong employee at a salary of £42,000pa could actually lead to losses of over £132,000 to the business.
A single bad hire can create a domino effect: poor performance, coupled with strife within the team, will affect productivity and potentially damage your business’ reputation.
The REC research shows that costs to the business of a bad hire are:
- £28,000 in wasted salary out of the total annual pay of £42,000
- £1,500 in wasted training
- £9,730 spend on recruiting and training the new employee
- £9,625 on lost productivity of the individual
- £29,160 on lost productivity of the wider team
- £54,000 in staff turnover as a result of dissatisfaction in the team
However, there are steps that hirers can take to ensure that the next is the right one who will contribute to growth and profit, rather than someone who seems like a square peg in a round hole:
1) Understand exactly who you need right now: Don’t just dust off the last job description when the time comes to recruit again. The job role may well have evolved and you need to regularly review the criteria for success to ensure you attract the right kind of candidate. Also, consider the overall balance of your team and build a flexible and inclusive workforce that can adapt as your business grows.
2) Check the salary band is correct: A good place to start is with our 2017 Salary & Benefits Survey which gives a useful insight into the range of salaries and the types of benefits being offered for a wide range of jobs in Basingstoke and the surrounding area.
3) Consider soft skills: No amount of technical ability will compensate for a lack of soft skills which are essential if a candidate is going to integrate with your culture successfully. Good communication, leadership and collaboration skills can often mean the difference between a good and bad hire.
4) Onboard new recruits effectively: If there are problems, they usually rear their head in the first few weeks of joining. By having a clear induction process and giving responsibility to other members of the team to show the new recruit the ropes, their chances of a smooth and trouble-free integration are much higher.
5) Partner with an experienced recruitment consultant: According to the REC report, 40% of companies state that their staff do not have the correct interviewing skills to find exactly the right people.
By choosing a local, professional recruitment partner, you can save time by relying on the consultancy to screen candidates and propose a short-list of people. They can also advise on the types of questions to ask in an interview.
With careful planning and the right support from an expert, professional team, you can face a future free from the cost of a bad hire.
To find out how we can help you find the Perfect Match for your team, call us today on 01256 334575.