If, like 70% of organisations surveyed by the CIPD, your vacancies are proving hard to fill, when was the last time you reviewed if your recruitment processes were up to scratch? Additionally, how are you ensuring your people stay, with 34% of organisations reporting difficulty in retaining staff past the 12 month mark1. In current uncertain economic times, shrewd recruitment is the watchword.
Recruitment can be costly and potentially risky
Whether or not you use a recruitment agency, the average cost to fill a position has been calculated at approximately £3,0002 – and you might be happy with this expense if you find the right person. But what happens when it becomes obvious that you have made a mistake? Not many new-hires come with a money-back guarantee and hiring costs aren’t the only expenditure with a new hire. It could be several months before you realise there has been a mis-hire and by then you will have invested in salaries, National Insurance, the autoenrollment pension scheme and not to mention the other hidden costs such as holiday cover, sick days, company cars and much more.
With 73% of respondents to a resourcing and talent planning survey report that their recruitment budgets will either stay the same or decrease, but an expected rise in vacancies to fill3, it’s clear that getting the right person into the right role is extremely important. It’s also clear that having the right people in place is vital to the continued growth and profitability of any organisation. You need to ensure that your people become your company’s most valuable asset, not the most expensive write-off.
Wouldn’t it be great if such a thing existed? We’re not suggesting that you can entirely eradicate risk from recruitment, but you can certainly reduce it considerably. You can gain a far better understanding of which person best fits your business before you even take the time to meet them. Also, by understanding the exact profile of the position you need to fill, you can match one to the other, in the most time and cost-efficient way.
The true cost of recruiting the wrong person goes way beyond the immediately obvious: up to 2.5 times their annual salary. You may also have invested in training, support staff or new equipment for this person – all of which is money poorly spent if a person quickly leaves. A mistake in recruitment may also compromise your longer-term business plans or the stability of your team – again with significant cost implications.
Getting it right first time
Just think about the value to your business of being able to hire the right person, first time, every time.
An effective and well-planned recruitment strategy should include the use of psychometric assessment. Why? Because by understanding the qualities, skills and personality that best fit a particular role, you can make sure you look for and find the right person. By asking all potentially suitable candidates to undergo an assessment, you will narrow the field and interview only the most relevant candidates. This saves you time and money and you can be confident that any of the short-listed candidates would be up to the job.
By asking all potentially suitable candidates to undergo an assessment, you will narrow the field and interview only the most relevant candidates.
Assessments do not judge right or wrong answers as far as the candidate is concerned. However, the results will show whether the applicant is right or wrong for your business, giving you far more control over who you decide to employ and reducing the risk factor.
A holistic approach
We can help you to take a holistic approach to your recruitment. From behavioural profiling, to measuring personality, cognitive ability and high potential, our range of robust and reliable assessment tools are suitable for recruiting all levels of staff and are relevant no matter what the job description or requirement is.
Over the coming weeks, we'll be sharing lots of new insights in talent selection and management to help you recruit and retain top talent.
1 Labour Market Outlook, CIPD Autumn 2018
2 The True Costs of a New Hire in the UK, The Undercover Recruiter
3 Resourcing and Talent Planning Survey, CIPD, 2018
If you would like to find out more about how our assessments can empower your organisation to make more confident and cost-effective recruitment decisions, get in touch today!