It's difficult to estimate the cost of a new hire that doesn’t work out, but an article I’ve just read suggests that a hire at mid-management level could cost £132,000!
It is very difficult to put a figure to the cost of a ‘bad’ hire but undoubtedly it can be expensive. It got me thinking about some clients we met last week to discuss new recruitment campaigns. There were some common themes across all the clients
The proposed new hire was critical to their growth and aspirations. In a few cases, new facilities and projects could not start until the new hire was on-boarded, as they simply didn’t have that expertise in their current workforce.
Some had tried recruiting the position but had experienced very mixed results. A few had engaged with external partners but had received only a few candidate profiles and a very small percentage looked ‘OK’. Others had posted adverts across different channels but the response, although very high, was very low in quality. Despite a few months passing, they were still in the dark and starting to wonder whether this candidate actually existed in the market. There was no data to support or discount this theory and no useful feedback from their external recruitment partners.
When interviewing prospective candidates, they just didn’t meet the competency standard required and, as importantly, they didn’t fit culturally. Some candidates didn’t appear to know the company and their goals. Other’s were unable to demonstrate the initiative required and expected. Culturally many of the candidates just wouldn’t fit the environment and the values that were integral to the organisation.
Recruitment can be very challenging. The good news is that it is possible to strike a balance between competency and cultural alignment. It is possible to have data to help understand the candidate market. With projects and facilities on pause until the new hire is secured, the pressure is mounting. Add to this the cost of getting it wrong, I totally understand why recruitment can be stressful and, indeed, expensive!
Failing in recruitment, though, can prove costly. The Recruitment & Employment Confederation estimates a bad hire at mid-management level can cost up to £132,000