Recruitment is a critical component of any organisation’s success, and it can be costly if done poorly. With the ever-present talent shortage, poor recruitment practices are becoming increasingly common, with businesses racing to put bums on seats rather than quality candidates. This can have a significant impact on businesses’ bottom lines. From inefficient hiring processes to inadequate training and high turnover rates, the cost of poor recruitment is something that businesses cannot afford to ignore.
One of the primary costs of poor recruitment is the direct financial cost. Recruiting, hiring and training new employees is an expensive process, and when it is not done correctly, it can lead to wasted time and resources.
This includes the cost of advertising job vacancies, screening and interviewing candidates, background checks, IT set up costs and the time of training the new employee into the position.
It all adds up and isn’t a cost to take lightly or one that is wanted to be repeated due to not getting it right.
One of the key concerns of recruitment is the impact on current employee morale and productivity – when an organisation hires the wrong person, this can lead to increased stress and workload for existing employees who must compensate for the new hire’s deficiencies.
The Harvard Business Review states that 80% of employee turnover is due to bad hiring decisions. Poor recruitment can create a toxic work environment and affect overall company culture.
Psychometric testing is a vital tool in understanding a person’s potential and personality and can be a really useful tool in the recruitment process, helping to assess candidate suitability for the role requirements and the team fit.
It can help to identify strengths and weaknesses within the team and any potential gaps which could be filled with your new recruit.
Talent ID are accredited Saville Psychometric Assessors and can arrange for this to be completed on behalf of any employer.
There is a common misconception that psychometrics are only used for high level roles, however they are a useful tool across all levels of any organisation, and can be very cost effective if you choose the right one.
Many businesses are under pressure to fill roles quickly, and as a result, they may not invest enough time in the recruitment process. This can lead to poor screening, hiring the wrong candidates, and poor fit with the culture.
Businesses must invest in creating effective recruitment strategies. This includes investing in training and development, offering competitive salaries and benefits, and providing opportunities for career advancement. It is also essential to conduct thorough screening and background checks.
Your critical compliance, as we call it, is another check to ensure that your new recruit is suited to the role.
Utilising HR and recruitment consultants who are trained in this area can ensure that the recruitment process is sounder and can take the pressure off the urgency of the recruitment, as well as ensuring the candidates are well vetted.
Another reason for poor recruitment is the lack of investment in training and development.
Many companies are not providing adequate training and onboarding, leading to new hires struggling to adapt to their new roles. Inadequate training can lead to mistakes, poor customer service, and decreased productivity, which ultimately affects the company’s bottom line.
In addition to the direct financial and productivity costs, poor recruitment can also damage a company’s reputation.
In today’s age of social media and online reviews, negative feedback from past employees or candidates can quickly spread, making it challenging for companies to attract and retain top talent.
Having a strong recruitment process and HR strategy can have significant financial, productivity, and reputational value for businesses.
Addressing these issues requires investment in effective recruitment strategies, training and development, and a commitment to hiring the right candidates.
By doing so, businesses can create a positive work environment, retain top talent, and ultimately increase their bottom line.
Get in touch with Kellie and the team at Talent ID to discuss any of your recruitment and HR needs.
