Do you know how much your company loses from the departure of an employee? Do you know the recruitment costs to hire a replacement? How about the recruitment cost of hiring the wrong replacement?
Calculating these costs isn’t simple; you have to look at a number of factors including reduced productivity, angry customers, and lost investment. Of course, these aren’t specifically monetary values either. Regardless, these headaches can eventually prove costly both in time and expense.
This is especially true in the hiring of the wrong candidate in the market I specialise in – Fire & Security Recruitment – where there is currently a large skills shortage. Wrong decisions can prove extremely costly, therefore it is important that when you make a decision to hire a candidate, you do it right, and you get it right.
Common hiring errors
All too often we see and hear about the same hiring mistakes being made over and over again, only further adding to your recruitment costs. These are the most common;
Too many cooks… don’t know what they want
You may not have spoiled the metaphorical broth when deciding upon your perfect candidate, but without open collaboration between senior management, too often there is a convoluted opinion on what the need is, what the role will entail, and who the ideal candidate is. This often doesn’t come to light until the interview process is in full flow and a significant amount of time has been invested with little progress made.
All that is gold does not necessarily glitter
Too many companies simply judge a candidate by their cover (letter), CV, or those with the best interview skills. These hiring decisions are often based on gut feeling without considering other factors such as attitudes and behaviours despite there being a mainstay in consideration when employees are underperforming or dismissed.
A lack of process hinders progress
Have you considered your brand and how the application and interview process reflects this throughout? A poor application and interview process can reflect badly on the company, turning great candidates against it, whilst it can also amount to a significant amount of time wasted if it does not reap the candidate you are looking for.
Find out more about how to interview well and recruit better: read our interview tips here.
A £30,000 mistake
Back to the recruitment costs. You’ve already invested a considerable amount of time into the interview process, and are likely to invest many more funds and time into developing the employee for the business. This is obviously a worthy investment if the candidate goes on to be a valued member of the team and contributes to the future growth and success of the business.
But you got it wrong?
There are hundreds of advice pieces on how to improve employee retention and whilst these suggestions such as introducing incentives and benefits, changing management styles, and overhauling company culture may certainly improve the appeal of the company, these advice pieces fail to take into account one key reason why employees may leave in the first place: you made the wrong hire!
You’re now faced with spiralling recruitment costs including severance packages, a potentially wasted investment, and the added recruitment cost of a replacement! A report by HR Review has estimated that in the recruitment of a replacement, you’ll be left with another £30,000 cost.
Cut these recruitment costs and hire right from the start
Have a re-read of the common recruitment mistakes I listed above, they’re mistakes when you do them wrong, but do them right and you’re on to a winning hire.
Here’s how to do them right, ensure you cut your recruitment costs, retain excellent staff, and ultimately continue to make the correct hire each and every time.
Cast a Wide Net
This is particularly important, and why dealing with an excellent and connected recruiter can be a thrifty investment. Often the best candidates can’t just be found through a job board or search, they may even already be employed. It’s important to know who is the best in the industry, who might be thinking about moving positions, and how you are going to get them.
Ensure a Clear Understanding of What’s on Offer
Senior management collaboration in defining what is on offer and what is wanted from the candidate is vital to hiring the right candidate! Ensure that all stakeholders are on the same track with regard to this. Once you have defined what key traits you are looking for in your next employee, finding them from a pool of candidates will prove a whole lot easier.
Behavioural Testing
At Eligo, we call this intelligent selection. Behavioural testing has seen a massive upsurge across the business landscape moving further into the 21st century. This scientific approach can reap a whole host of benefits that enable you to counter the hiring mistakes above.
Candidates undergo psychometric behavioural tests to establish their key attributes, strengths, and weaknesses and what roles they will be suited too. As an employer, you are then able to match these to your pre-defined requirements for the role to ensure you find an employee that not only has these skills to succeed in the role but will further enjoy, develop, and thrive in it.
Utilising behavioural testing will save both time and recruitment costs, reducing the time needed to complete the entire interview process, time and money on training candidates, and ultimately time and money on reducing employee turnover as candidates are proven to stay in their jobs longer when matched with the perfect position.
Employee Pre-Screening
Pre-screening is essential in saving considerable time throughout the application process. Combined with the above behavioural testing and key competency questionnaires, having applicants submit a video of themselves answering pre-defined interview questions will enable your organisation to short-list candidates effectively without the need for coordinating diaries to schedule interviews.
Employer Branding
Your company brand is vital in the application process. Remember interviews are a two-way process. Whilst you are seeking the perfect candidate for the job, candidates are also assessing whether this is a company they want to contribute their skills to and work for.
Combining the above elements, ensuring a smooth, simple, and succinct application process that is tailored towards your brand's values, image, and how it runs day-to-day will appeal to the candidate whilst protecting your brand image and again – saving recruitment costs and time!