Buy Cheap, Buy Twice: The Costs of Bad Recruitment
1st May 2015 · IT Talent
If you think it’s expensive to hire a professional, wait until you hire an amateur.
Why Use A Recruitment Agency?
Hiring new employees will always inevitably carry an element of risk. Indeed, the people who carry and represent your business will always be the most critical aspect. It is imperative that organisations ensure that they’re getting value for money by attracting the right candidates from the get – go, and not settling for somebody who falls short of their expectations. After all, if you’re not hiring the right people to begin with, your ability to succeed will be greatly compromised. People buy from people.
According to the Chartered Institute of Personnel and Development (CIPD), the average recruitment cost of filling a vacancy is £4,000, increasing to £6,125 when the associated labour turnover costs are included. For a senior manager role, these figures can rise to £10,000 and £9,000 respectively, and if things fail to work out the first time around, you can expect to double these for the cost of rehiring again. Moreover, the Harvard Business Review points out that as much as 80% of employee turnover is due to bad hiring decisions, and the Society for Human Resource Management (SHRM) further found that the higher the person’s position and the longer they remain in that position, the more it’ll cost to replace him or her.
This is clearly circumstantial depending upon many variables but for smaller agencies, such costs can be even more arduous; especially so for senior roles whereby senior management is acute and business critical.
Of course, bad hires aren’t independently costly in terms of monetary means. Of top of financial burdens, a grand amount of time and effort is also wasted. Listed below is a compilation of things you can avoid by using an established and well – practiced service:
- Corrective action
- Spending countless hours locating prospective candidates, rather than other important tasks
- Reputational damage
- Internal disruption, including a lack of productivity and the eroding of morale, due to other employees subsequently being forced to babysit the new starter or pick up work because of inadequacies
- Missed business opportunities
- Severance procedures and costs
- Litigation costs
- Wasted training costs
- New advertising costs
- Increased sickness and absence (in the case of unreliable new starters)
- A quick employee turnover
Why Specifically Use IT Talent?
Given the enormous mishaps that can accumulate, it makes sense to invest in making your hiring process watertight; minimise bloopers by leaving it to the experts! The odds are favourable when you utilise a firm with the ability to measure and evaluate a potential new recruit’s skills effectively. Subjective opinion will always come in to play to an extent, but this should always be underpinned by a comprehensive and objective assessment of the candidate’s sustainability across the entire performance spectrum. Accordingly, you should be transparent in your preference and requirements so that we can apply that knowledge critically and to its fullest effect.
However, words are worthless if you can’t validate the distinction of your service. With countless recruitment business models, practices and processes, how do you distinguish between this self – professed ‘professionalism’ and an agency that adds value?
What does excellence really look like?
We think it’s this …
Remaining Responsive to Clients’ Demands:
Any good agency will be proficient in providing sophisticated solutions that meet the diverse requirements of their clients.
From a consumer perspective, if you’re looking to purchase a suit, for example, you have several options. If you want budget, you go to Asda. It’s still a suit, but it’s generic and ill – fitting. But if you’re a fan of strong tailoring and want to invest in the utmost quality, you hit up Savile Row. And wear it again, and again, and again. It’s not a case of one – size – fits – all; good recruiters take the time to understand clients’ requirements and provide bespoke solutions, through varied approaches but equal levels of dedication.
The Need for Speed:
Agency professionals provide a faster recruiting process. Operating uniquely within the required marketplace, they can quickly identify the desired skill sets in potential candidates. They make it their priority, reacting with efficiency and with urgency!
The Strength of a Network:
During the hiring process, clients frequently complain about the lack of available talent. The necessary individuals are out there but it often takes the work of good recruiters to effectively source them. Beyond extensive company databases, agencies can build strong connections and develop a valuable sphere of influence. Drawing from a larger talent pool, they can more frequently provide the perfect candidate who may be otherwise inaccessible.
A truly professional agency develops highly professional consultants who work as effective intermediaries and offer valuable third party perspectives and market expertise.
As it happens, the above quote was not composed by anyone in the recruitment industry, but by American Oil well fighter, Red Adair, know globally for his innovative and effective approaches to extinguishing hazardous oil well explosions.
We don’t pretend to extinguish hazardous oil well explosions but as professionals, we know how to effectively use our tools, understand our processes and acknowledge our limits. Furthermore, we are efficient in our executions and provide assurance to our clients that we can do the job better and faster than they can, bringing ease, speed, value and relevance.
A Long – Term Contact
Why just use us just the once? Invest in us and we will continually invest in you. Faithful and loyal, we will always be here to greet you when you find yourself with a seemingly – impossible vacancy.
Like the old wives’ tale professes, “buy cheap, buy twice!”
* For affirmation of our services, please see our client testimonies.
– Shonagh Phillips, Communications Manager