We are now at the start of a new year, optimism is high and many companies have expansion plans.
It is important to give any hiring needs some serious thought. It has statistically been shown that the cost of bad hire to a company will be at least $50,000.
Making a bad hire will be costly and could ruin your business. The aim of the article is to highlight some of the mistakes made in recruiting. Let's first consider some of the ramifications both monetary and non-monetary of a bad hire. These include:
• Fixed costs of hiring including recruitment fees, visa costs, time, lost wages etc
• Tarnished reputation. A bad hire leaves a bitter taste. No one wants to work for a company with a reputation of high staff turnover.
• Damage to existing staff morale.
• Damage to your own clients' morale. They don’t want their contact point at a company continually changing.
• Remember your corporate responsibility is not only to your company but also to the person you are hiring; you can damage a person’s career because of bad recruitment practices.
• Wasted time in training up new staff and hassle of reorganising duties of the person selected to cover that person’s work whilst you hire someone else.
So why do some companies get it wrong? Here are some of the biggest mistakes that we have seen, unfortunately all too frequently. These mistakes occur globally (not just within the GCC) and we need to be honest about the situation so that we can all learn from the mistakes and recruitment practices can improve. This improvement will ultimately benefit your company with increased productivity and profitability.
Article continued on next page...