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.