The True Cost of Making the Wrong Hire
29/11/2017 by Andy Winterburgh
UK businesses are failing to hire the right person for two out of five roles despite the significant financial costs of making mistakes, according to a report from June this year from the Recruitment & Employment Confederation (REC). Their report states that the actual costs of making a poor hire even with a (relatively modest FS) salary of £42,000 can cost a business more than £132,000.
The Hidden Costs
The hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover as well as the cost of finding and training a replacement, but the cost can be so much more than the immediate financial impact.
In a world where candidates are in short supply and retention really is a key part of any HR plans the contagious disenchantment of a wrong hire can start a snowball effect of leaving. Other employees are also likely to have also had to cover for any lack of productivity from the wrongful hire, so the true cost can quickly spiral.
What should you consider before making a hire?
There are many recruitment models, but I wanted to outline that in my mind there are 2 key questions that you should ask before making a hire
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Integrity, motivation and character – knowledge can be taught, but you can’t teach attitude.
2. When you have evaluated your business and where it will be in 3 – 5 years’ time, does this person have the skills and/or qualities of someone who can grow and lead within your company?
Understanding and listening for the right hire
At Hybridge we work closely with companies and candidates to ensure that they really do find the right fit. Our approach to this is simple we "seek first to understand", by which we mean we take the time to listen to the specific needs of both parties. As a result since we were founded in 2011 <2% of people we have placed have left jobs within their first year for any reason.
If you’d like to discuss the approach the best Internal Audit functions are using to ensure they hire and retain top talent, or if you’re an Internal Audit professional and you’d like to work with a recruiter who understands the market, is well connected and will take time to find the right opportunity for you, get in touch with Hybridge today.