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Are you INVESTING or SPENDING money on new staff?

June 10, 2016

 

How well do you understand the abilities of the people you are recruiting?

This may seem like a simple question, as many companies have a Recruitment and Selection process in place, but what does this mean?

 

How many businesses know the true COST of Recruitment and Selection?

 

I hear all the time what the cost is for recruiting a person: £1000-£2000 for a recruitment agency - who then carry out the adverts, the selection processes, filtering resume's, giving hope to candidates and placing the 'appropriate' people in front the company to make their final choices. They then take 10-15% of the total salary of the person as their finders fee. (This is me living in a simple land with simple numbers!)

 

Job done everyone is happy and the business has spent maybe up to £5000 on a role advertised at £30K.

 

Admittedly this is a very simplistic approach to the recruitment process, however this is also where the true cost of selecting the right people comes in...

  • what if you have chosen a less than competent and capable person to save money and mould them: have they been given a development plan to get them job ready; how long is this development plan; who is supporting them; how will you know they are now competent; when are they going to be worth their salary; are they the right fit for the company?

  • what if you have chosen an over achiever that is highly competent and capable that can hit the ground running: have they been given a development plan to get them job ready; how long is this development plan; who is supporting them; how will you know they are now competent; when are they going to be worth their salary; are they the right fit for the company?

In both these cases the questions are the same, I am sure that there are more questions to consider, however these are the first that spring to mind.

 

When we talk about the cost though - do you consider the following:

  • The time spent filtering through the selected candidate resumes

  • The people involved in the interviewing process (selection panel of maybe 3)

  • The number of hours they could be doing interviews

  • Delivering a second set of interviews

  • Decision making sessions

  • Induction and on-boarding processes 

  • Development and Training through a probation period

  • The people involved in the entire process - their time, their cost when not doing their actual job

  • Lack of productivity whilst learning

  • Lack of support and 1-2-1's, throwing them in at the deep end

  • Not realising they are not fitting in

  • Pushing them harder

  • Making them a head count - whilst still under performing

  • Doing a disciplinary

  • Going to tribunal

  • Impact to your brand

This is a reality - by not having the right PEOPLE STRATEGY in place, when you think about spending £5000 on a new starter, in 6 months it may have cost you £45K and not had any Return On Investment from member of staff.

 

Are you SPENDING money on recruiting staff for your company? Or INVESTING money on introducing the right people to your business and its people?

 

ASPIRE CONSULTING AND TRAINING LTD can work with you to help you understand how your people can be your biggest asset, when given the chance to learn, engage, develop, improve, evolve and grow themselves, their teams, and 'their' business.

 

If you can INSPIRE them: they will ASPIRE to achieve

 

 
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