The Cost of Recruiting
The cost of recruiting will vary widely depending on the role you wish to fill, but most recent figures given by the Chartered Institute of Personnel and Development (CIPD) for replacing a worker are £4.6k rising to £10k for a senior manager. These figures take into account a range of costs including the cost of the advertising; management time during the selection process; the cost of interim cover whilst you are waiting for them to complete their notice period with their current employer; and the initial induction period before they become fully effective in your business etc. Of course this could be even higher if you offer assistance with relocation costs.
However, recruiting the wrong person for a job can be even more costly than getting it right. Appointing the wrong candidate can lead to additional work and headaches if the candidate causes problems for clients or colleagues. In addition there is the risk of potential litigation - either from the candidate directly or from unsuccessful candidates if they believe that they have not been successful as a result of illegal discrimination.
Helen Astill, Managing Director of Cherington HR believes that many employers are not aware of the risks involved in the recruitment process. “I am concerned that some employers don’t understand that they can damage their business by not planning their recruitment activities carefully enough.”
Businesses with good employees may need to work hard to retain them, but ultimately it is more cost-effective than having to spend time and money finding replacements.
However, if you need to find additional employees, there are some key principles to follow to get the best person for the job and to protect your business. These are outlined in more detail in the next few articles.
Posted on 19 Nov 2016