Making a wrong decision when hiring candidates can be an expensive mistake. Last year the CIPD reported that the average cost of recruiting the wrong person for a role is £8,200, with that figure jumping up to £12,000 for directors and senior managers. The most direct way that a bad hire can take its toll is through the initial costs of the hire, followed by severance pay and, ultimately, the search for a replacement. But there are other ways your decision can come back to haunt you, and they are more wide-reaching.
If it’s becoming clear that your new employee is ill-suited to their role, your first instinct will probably be to get to the root of the problem and see if it can be fixed. This usually involves additional training and ongoing performance reviews, which will cost your business time, money and resources. Of course the employee could grow into the role, but there is also a chance that the root problems cannot be satisfactorily resolved. Whatever the case, the work involved in putting things right will be an unwanted distraction from your day-to-day operations.
Secondly, if your new hire is unable to carry their workload, it will put extra pressure on the rest of the team to pick up the slack. This could have a knock-on effect on staff morale, creating tensions in the work place and – worst case scenario – resulting in some of your most skilled employees voting with their feet. This may seem like an overly pessimistic assessment, but it is borne out by the survey figures. According to a study by a leading recruitment agency within the REC, 95 percent of financial executives surveyed said that a bad recruitment decision somewhat affects the morale of the team.
On a more basic level, hiring a poorly-suited candidate is bad for business. As already mentioned, fixing the problem can be a drain on time and resources that could be spent more profitably. In addition, a poor job performance will hurt productivity. This could lead to errors, missed deadlines and even the loss of clients. If a precedent is set for sub-standard work output, it could damage your company’s profile in the long run.
So how can you avoid the somewhat gloomy scenarios mentioned above? The answer is straightforward: approach with caution. Hiring a candidate is always a leap of faith to some degree, so it’s important to assess every risk and variable before making that leap. Ensure that you have a comprehensive idea of what your requirements are and if you feel that it’s too much to handle alone, seek assistance from an outsourced recruitment specialist.
At DATS Recruitment we have made this sort of meticulous and clear-eyed approach our mission statement. We are dedicated to understanding a requirement inside-out, and our extensive experience in vetting candidates in the North West and across the UK allows us to identify their key qualities and competencies to find the right fit for your company. We know the risks involved – we’re here to ensure that your next hire is a success.