|Research undertaken by Gough Recruitment has revealed that business owners are losing hundreds of thousands of dollars annually by hiring the wrong talent.|
|Over 90 per cent of the 250 business owners interviewed conceded they had made the wrong hiring decision at least once and in many cases multiple times.
The research highlighted that every time an employer recruits the wrong person for a position, the cost to the business is approximately 60 per cent of the person’s wage value. This figure incorporates lost productivity when an employee resigns, onboarding (inducting) new staff, management’s time involved in training the replacement, advertising for the position and recruitment fees.
Joel Barbuto, Managing Director of Gough Recruitment said, “Business owners are failing in many areas when recruiting and this is costing them thousands annually.”
“Recruitment is a highly specialised area and like any profession, it takes many years to master the art. The biggest asset and challenge in any business is its people. Taking the time and utilising the appropriate resources to get the recruitment decision correct the first time will pay dividends from both a time and monetary perspective.”
He added, “The mistakes made by employers when recruiting new personnel are varied. Some of these include not selling their business honestly to potential candidates by only disclosing the positives that characterise the company and not the challenges that need to be addressed. Further, inadequate emphasis is often allocated to ensuring that the applicant is the right cultural fit for the business. Another error relates to inappropriate salary packages being negotiated with prospective employees.”
“Over selling the role is another major fault commonly made by employers during the job interview process while the onboarding process is frequently not given the priority it demands. In many instances candidates are literally dropped in at the deep end and are expected to negotiate their various employment responsibilities with minimal support.”
He concluded, “Getting the recruitment process right from day one should be a high priority for every business owner. All businesses revolve around people. Ensuring the hiring process is right will help facilitate long term business growth.”
Joel offers the following five hiring tips:
1) Spend time getting the employment brief correct. This should include the job specifications, what the company is looking for and the culture it is seeking to create within the work environment.
2) Be open and transparent in the recruitment process. Reveal the strengths as well as current and future challenges the company is facing.
3) Move quickly on good talent as the candidate market is currently tight. Ensure management has the ability to hire quickly while still undertaking all of the relevant reference checks.
4) Ensure the salary that is being offered is market value. If it is not, companies run the risk of people moving on sooner rather than later.
5) The onboarding process is one of the most important aspects of the recruitment process. Ensure all new staff are warmly welcomed and given the appropriate initial and ongoing training to deliver for the business.