Cost of a Bad Hire for the Applicant
Why is the recruitment evaluation process so long? It must seem like a big toll on your time (and energy) to talk multiple times with a recruiter, complete paperwork, etc. before a company sees your file. What are the risks?
Cost of Resignation
If you are employed and we connect with you regarding a career opportunity, we evaluate not only your experience and skillset for “fit”, but to ensure that the company, its corporate culture and the community into which you are moving will work for you. We want you to have the highest probability of success. We do not want you to accept a new position, resign, start with the new company, and have that employment end. That is a lose-lose!
How do you explain a short tenure on your resume? Leave it off? If you do, how do you explain why you left? If you use your existing employer as a reference, it will come out that you left for a new position that you didn’t record – impacting your credibility.
The agricultural industry is the size of your fist – everyone has connections with key players somehow. How would it impact your career if you are released from a position for poor performance or poor fit?
So, that is why we have an in-depth evaluation process.
Hiring Changes in 2021:
• The transition to remote work and shifts has significantly impacted company onboarding practices.
• Many companies are working to improve their candidate experience and reduce the time-to-hire.
Change is good, however, some hiring process changes have negatively affected the evaluation of candidates. A quick (bad) hiring decision can have an unintentional effect or influence throughout an organization.
Cost of a Bad Hire for the Company
Loss of Productivity
Senior managers know that hiring the wrong person sets the organization back at least 4 months. This timeframe includes the time from the start date, the evaluation period, and the additional weeks required to restaff the role after the dismissal. This does not include the training time of the replacement employee.
Cost to the Company
Numbers vary depending on the source, but when the actual costs of hiring are tallied including disruption to the business, training, reduced productivity etc. it can cost anywhere from 40% to 200% of the position’s annual salary, depending on skills and experience required. The supervisor’s increased stress and the effect on staff morale when someone leaves is not even considered here.
A recruiter’s selection process is designed to benefit both the applicant and the employer. We spend significant time with company representatives to determine exactly what “type” of person they require – not just the list of qualifications and experience. The ‘type’ of person described by the company is the benchmark against which we evaluate candidates. We want to be confident the individual hired has been properly evaluated for fit–the company holds sole and exclusive discretion regarding their hiring decisions.
This investment of time during the evaluation period is intended to reduce the toll on all we connect with.