You want people in your team with whom you can build a long-term collaboration. This collaboration starts taking shape from the recruitment stage if you choose the right colleague for your team. Your focus on the recruitment process becomes even more critical when you consider that a poor hire could cost you 30% of an employee’s annual salary, according to data from the U.S. Department of Labor.
These figures are further supported by additional data. According to CareerBuilder, nearly three-quarters of companies that made a poor hire reported an average loss of $14,900. In the United States, the average cost of a recruitment process is $4,700, and it takes 36 to 42 days to fill a mid-level position. Moreover, 15% of human resources budgets are allocated to recruitment efforts, according to data from Zippia.com.
In a study cited by Fortune, 34% of CFOs stated that poor hires not only impact productivity but also require managers to spend 17% of their time supervising employees who are still in training.
The Visible Costs of a Bad Hire
At first glance, these figures may seem exaggerated, but upon closer analysis, you may find they add up to these amounts. A recently published article on Republica.ro offers a detailed breakdown of the visible and hidden costs an employer incurs when losing an employee. Some of these costs are also applicable when hiring a new employee fails.
From the perspective of visible costs, we can highlight the following: internal recruitment and selection costs, promotion and marketing expenses to attract new candidates, integration costs for onboarding the new employee, costs associated with lower performance of a new hire in the first few months, expenses for new equipment and licenses, relocation costs and installation bonuses, costs related to candidate dropouts during advanced selection phases, recruitment agency fees, and others.
The Hidden Costs of a Bad Hire
From the perspective of hidden costs, the article’s author mentions the following: productivity losses due to prolonged vacancy, which can lead to a decrease in service/product quality, cash flow disruptions, and even a drop in revenue; reputational costs and loss of credibility in the market; disputes and conflicts caused by overburdened employees; and the associated risks of losing clients, suppliers, or business partners. These hidden costs can also lead to resignations or competitive recruitment driven by dissatisfaction and tensions among internal employees.
The journey to finding the right person for a new role in your company involves essential steps that must be approached carefully, as each step reflects on your employer brand.
How to Reduce the Risk of a Bad Hire
The good news is that you are not alone on this journey. The HR consulting company BIA, with over 29 years of experience in recruitment, offers a comprehensive approach to finding the right colleague for your team. You will benefit from a full range of recruitment services, including a thorough job analysis, preparing a database of the most relevant candidates, creating recruitment ads that set clear expectations, conducting necessary interviews, and creating a shortlist of candidates (complete with a profile report) as well as providing feedback at the end of the recruitment process.
Moreover, we can offer support and guidance to help the new colleague integrate smoothly into the team.
George Georgescu, HR Business Development Manager at BIA Human Capital Solutions (HCS), outlines the steps of collaborating with BIA to recruit people for your team:
What information should the employer have when meeting with the BIA representative?
From our perspective, every new collaboration with a partner, whether existing or new, begins with a discussion to calibrate the candidate profile. The goal of this meeting is to identify valuable information for the smooth conduct of the recruitment process, beyond the details provided in a job description or a brief list of skills, competencies, and responsibilities.
When we meet to discuss the recruitment process, it is important for the employer to have a clear understanding of the candidate profile they want for their team.
It is also essential to define the minimum knowledge and experience required for the future colleague. This will help us recruit a specialist who can successfully perform the role they will occupy.
We will also discuss the team the future employee will join, the working schedule and style, as well as interactions with colleagues. This information is useful for selecting candidates who best fit within the employer’s team.
What services does recruitment include and what steps does it involve?
The recruitment process includes the following steps:
- Job analysis and project strategy design.
- Preparation of a pool of potential candidates and their selection for evaluation.
- Approaching potential candidates and scheduling interview agendas.
- Interviewing and selecting candidates.
- Presenting the shortlist and evaluation reports for each proposed candidate profile.
- Arranging and supporting final interviews between the Employer and the Candidate.
- Offering the selected candidate a job. Upon the employer’s request, we can get involved or offer support in negotiating the job offer with the final selected candidate.
- Providing feedback to rejected candidates.
How long does the recruitment process take?
Depending on the type of position and its level of difficulty, a recruitment process can last from a few days to a month or a month and a half.
When does the employer receive information about candidates and what information is provided?
Throughout the recruitment process, there is constant communication between the employer and the BIA consultant, ensuring that the project remains aligned with the employer’s needs and the realities of the labor market. In addition to this continuous communication, BIA provides objective information about the status of the recruitment process through periodic reports. For example, when we make candidate recommendations for the shortlist, we send reports detailing the profile of each selected candidate. This communication remains one of the key pillars of collaboration until the recruitment process is completed.
What happens if, for example, a candidate is hired by a company and quits after two weeks?
Our objective is to prevent any situation where the new employee quits after a period in the new job, but there may be situations where this happens independently of BIA HCS, such as when the new employee receives incomplete or inaccurate information during the interview with the employer, aimed at attracting them, or situations related to the atmosphere at the new workplace, conflicts with older employees or superiors, or issues with the integration process that the employer does not treat seriously. All these events can cause the new employee to decide to leave the job shortly after being hired.
For each recruitment project, BIA offers a guarantee period depending on the position type and its seniority level. This guarantee can range from 2 weeks for a blue-collar position to up to 12 months for top management positions.
If the employee leaves the employer’s company during the guarantee period for reasons related to the recruitment process, the recruitment will be restarted without charging a new recruitment fee. Also, the number of these replacements is limited according to the agreement between the employer and the human resources consulting company.
How is BIA as a recruitment partner for an employer?
BIA aims for every new partnership to extend beyond a single recruitment project. Therefore, we do everything possible to ensure that each collaboration and recruitment process meets the expectations of our partners so that they will consistently return with more projects.
Do you want to recruit people for your team who fit both in terms of skills and organizational culture?
Form a partnership with BIA, and we will handle all stages of the recruitment process and the integration of the new colleague. Send your message here.
Here are the advantages we offer in recruitment:
- Experience in recruitment across various fields: accounting, construction, retail, medical, pharma, automotive, architecture.
- 90% of projects are successfully completed through direct search and headhunting.
- Reduced recruitment time, with some positions filled in less than 5 working days from the start of the project.
- Integration of the job profile into the company culture and defining the strategy for candidate search.
- Support in offering candidates and negotiating terms.
Soruces:
https://social.hays.com/2020/11/04/how-to-write-best-possible-job-advert/
https://www.linkedin.com/pulse/whats-cost-bad-hiring-decision-brian-fink/
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