The cost of a poor recruitment decision

How each poor recruitment decision mounts up to a vast national cost…

We recently discussed the issues of recruitment and CV fraud  – and detailed some of their financial and non-financial implications.

Well, new data has emerged to illustrate the price paid by the companies mistakenly recruiting fraudulent applicants. Crowe UK reveals that businesses are spending a total of £23.9 billion a year due to recruitment fraud.

As a reminder, this may be due to the use of fake qualifications or falsified documents, such as embellished CVs and applications. Candidates have also secured worryingly high-level roles (including those within medicine and aviation) as a result.

Where is the money going?

These costs comprise a variety of factors, including:

  • Initial recruitment procedures
  • Low productivity
  • ‘Internal investigations’ and disciplinary action
  • External penalties
  • And matters relating to the employer’s reputation
  • Internal costs such as fraud, theft or data breaches, may also apply.

Of course, perfectly reputable candidates may also prove costly if they’re not the right person for the job.

Looking at poor recruitment decisions in general:

The cost of the average unsuitable recruit is as follows (via the REC)

  • Wasted salary: £28,000
  • Wasted training: £1,500
  • Recruiting & training the new employee: £9,730
  • Reduced productivity from the wider team: £29,160
  • And total staff turnover: £54,000

TOTAL: £132,015 per each unsuitable recruit

How can you make better recruitment decisions?

Consider the many ways that you can improve your recruitment processes, including yet not limited to…

  • Clearly identifying your recruitment needs ahead of your candidate search. Consulting your colleagues and/or employees where needed.
  • Dedicating sufficient time to employee attraction and screening.
  • Making certain that your job descriptions truly depict the roles you’re recruiting for – while clearly communicating your expectations and the realities of working for your organisation.
  • Considering any necessary skills assessments.
  • Making use of trial periods and or temp-to-perm contracts where appropriate.
  • Ensuring the utmost efficiency so that you don’t lose any top candidates along the way.

Your recruitment consultant can support you with each of these decisions. Therefore, working closely alongside an expert recruitment agency may help ease much of your time and cost burden.

For further advice about recruitment in Bath and the surrounding area, please call the office on 01225 313130. You can also find out more about our service here.



Are you committing CV fraud?

No doubt you’ve heard at least a little something about the College admissions scandal. Well, recruitment is facing its own scandal…

The growing case of degree and CV fraud:

It turns out that almost half a million fake degree certificates have been purchased over the past 8 years alone.

Many of these come from entirely counterfeit institutes, with 243 such businesses now on the Prospects list (Prospects being the organisation that has teamed up with the National Fraud Intelligence Bureau to investigate this problem).

Alongside this, some organisations pose as genuine universities in order to obtain personal details and, of course, payments.

The cost of these fake qualifications…

This global ‘industry’ makes in the region of  £37.5 million a year, according to the BBC. One British man actually spent £500,000 on fake qualifications.

Yet these aren’t the only costs to consider. As per the BBC report, “degree fraud cheats both genuine learners and employers.”

It also places the buyer at risk.

What are the legal implications of CV fraud?

It’s not the act of purchasing or possessing the fake documents that is unlawful, but rather the act of using these documents within your CV and/or job applications.

This is considered a criminal offence and falls under the Fraud Act 2006.

If convicted of this offence, you could face up to 10 years’ imprisonment.

Even if your actions aren’t considered gross enough to warrant imprisonment, you may be at risk of dismissal from your job and even the chance of being sued for compensation.

What about ‘white lies’ on your CV?

Unsurprisingly, it’s far more common that people fudge their grades or work experiences than they pretend they’ve studied somewhere or something they haven’t. However, what you perceive as minor lies could still cost you your job and your reputation.

With this in mind, it’s worth having another look at your CV to ensure that everything you’re presenting is a true picture of your skills, education and experience.

You can find straight-forward CV advice on our downloads page. We also share hints and tips regarding what to include in your cover email to recruitment agencies in this popular post.