The Chartered Institute of Personnel Development estimates that the cost of a bad hire can be in the region of €9,000, more if you take into account lost productivity and opportunity cost are taken into account.
There are any number of reasons why employers make poor recruitment decisions. Rather than focus on what managers do wrong, employers need to look at three essential elements that ensure they will make the correct hiring decisions.
When something goes take it as a learning experience; it is only a big mistake if you don’t learn from it. When bad hiring decisions are made, things go wrong because managers find a reason to not accept responsibility for the bad hire we’ve all done it. Rather than use it as a learning process, they go into a state of denial.
Bad recruitment decisions are a great learning opportunity before they become long-term mistakes.
Rushing the recruitment process
The second error that is frequently made is to rush the recruitment process. I accept that as a recruiting manager you are probably under pressure to fill the vacancy however that is not an excuse for making the wrong, rushed decision.
Think about the process a business will go through if they are to spend €50,000 on a new piece of equipment. There will likely be feasibility studies, ROI considerations, alternative options reviewed and most likely third party referrals. It will be a time-consuming and considered process… and so it should be.
Now think about the time and consideration that goes into investing say €25,000 to recruit a new employee to operate that equipment. If you have been in that situation, in hindsight how thorough was the process? Was it rushed?
Time spent planning to recruit is an investment; it is time well spent.
Finally, more so than ever before, with the demand for talent exceeding the available supply, recruitment has become a two way process. Managers need to demonstrate to the candidate that their an organisation you want to work for. This is done by having an innovative and structured recruitment process which starts with choosing the correct advertising channel, understanding the importance of candidate engagement during the recruitment exercise and culminates with an offer and on-boarding experience that leaves the new recruit looking forward to their first day.
It’s easier said than done, but if you know where you want to get, it’s a matter of time before you get there. Even highly experienced HR managers make mistakes. That’s how we learned.
Colin Lock, Managing Director UK