Is your recruitment a financial black hole for your business?

As much as an open post can cost your business, there needs to be some thought into how you recruit and the level of talent you attract.

An unfilled job post can cost your business a pretty penny. However bad recruitment can cost your business not just financially but can interfere with the internal culture.

A recent report from CV library found that over 56% of businesses are spending up to £5,000 on hiring new members of staff. In the report a further 21% spent £5-10,000 and 15% spent up to £20,000.

In total this is 92% of businesses spending a substantial amount of money on their recruitment.

What happens when this costly process goes wrong?

Staff leaving

A bad recruitment decision can cause a high turnover of staff. Either the new recruit will leave as the job isn’t what they expected, or other members of staff can become collateral damage for a bad hire.

Financial loss

Not only have you lost your fees you paid to recruit the individual and will have to pay out further recruitment fees, but loss of morale, productivity and bad business decisions will have impact on your bottom line.

Low morale and decreased productivity

We all know being in a bad environment has an impact on morale, which in turn affects productivity. Perhaps the new recruit doesn’t feel well suited to the role and any bad feeling will affect all members of staff within that department.

Poor employer branding

People who leave a business on negative terms can have an impact on the word of mouth regarding your business, which can have impact on your employer brand. In addition there are also now many company employee review sites, which could impact top talents decision when researching new opportunities.

What can you do to make the best decision?

Working with a partner who wants what’s best for your business. Recruitment agencies on the whole get bad press, and seem to be more concerned about the number of applicants they can put forward rather than the right fit for the business.

Utilising a recruitment consultant that uses human intuition could have positive results for your business. At Discovery, we pride ourselves on the calibre of applicant we put forward to businesses, we interview every applicant prior to exposure to our clients to ensure there is the best fit and personality and skills match to the business. Along with our long term services such as Talent Labs, Discovery’s aim is not to place and forget but to nurture the applicants in their career process,  we are your long term employment partner with a key desire to develop your employers and build a strong employer brand.

Sources:

https://www.cv-library.co.uk/recruitment-insight/wp-content/uploads/2017/02/cvl-the-real-cost-of-bad-recruitment.pdf