So many of the conversations we have are dominated by metrics & SLA's which is no bad thing. But this research is pointing us towards a metric that is not often part of the measurement a communications and resourcing (including RPO) business faces. Quality of Hire!
Cost per hire is the most common language as procurement teams look at how they drive savings and efficiency into their businesses but are they doing more harm than good?
It will almost certainly cost more to improve the quality of hire. It starts with the right job profiling where we can determine what a good performer looks like and what are their motivators and drivers. The right attraction and sourcing then builds a relevant pipeline. You then build the right selection and assessment tools into the process to ensure the most suitable candidates are moved through the candidate journey which is all built around your employer brand. The final piece is a great offer, on-boarding and induction process that ensure that these great hire arrive and motivated to start performing at their A game.
So the investment may put the initial hiring cost at a higher level the research would indicate that this is recouped many times over with the right quality and fit as they perform better, stay longer and become brand ambassadors attract more great talent.
The report shows that 85% of HR decision-makers admit their organisation has made a bad hire, and 33% believe that these mistakes cost their business nothing. However, further figures show that a ‘poor’ hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000. The hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover. Meanwhile, 39% of employers admit that the interviewing and assessment skills of their staff should be improved. “Getting recruitment right is even more important during a time of economic uncertainty because businesses need to ensure they’re not wasting money,” REC chief executive Kevin Green said. “Our calculations show that UK businesses are wasting billions every year because of the volume of hiring mistakes being made.”