We often speak to business owners that state they do not use recruitment agencies because of the cost. Some business owners feel that recruitment agencies cost too much and therefore it is cheaper to recruit new employees by themselves.
However, some of these business owners haven’t considered the risk and the cost of a bad hire.
In fact 85% of HR decision makers admit that their business has made at least one bad hire when recruiting for themselves, on their own. A further 1 in 5 of all HR decision makers state that they do not know how much a bad hire costs their business.
It is reported that it costs an employer 33% of a worker’s annual salary to hire a replacement if that worker leaves the business.
However, that’s not the only cost of a bad hire.
There are lots of things that make up the cost of a bad hire.
For example, starting at the beginning, the cost of your time to put together a job advert and job description before advertising it. In some cases you will need to pay to advertise your job in the local media, on some job sites and on social media platforms.
There is then the cost of your time going through the CVs to find the right candidates, and the cost of your time to interview these candidates at least once, but in some cases three times.
When you have found the right candidate for your position you then need to cost of office equipment for them, training costs in-house and training courses they may need. It will take a while for the candidate to get into the swing of things within the business and this will cost the business too.
However, if this is a bad hire then this money and costs will have been wasted as you’ll have to start all over again. There are also the costs of removing the bad hire from your business too. During their time with you the bad hire could have also damaged your business reputation, of which you really can’t put a price on.
Do you know the cost of a bad hire to your business? Why not consider talking to our recruitment consultants in Huntingdon to avoid the risk of a bad hire in the future?