Organisations worldwide spend a huge amount of money, time and resources in the recruitment process each year. For filling one post, company needs more than a week to scan resumes and shortlisting suitable list of candidates who can be called for in person interviewing. During this process a lot of time is invested and a wrong decision can be a huge loss to company and its resources.
On internet millions of resumes are uploaded each day, it has become very tough task for an employer to find the best suited candidate for the job specified. Nearly 80% of the resumes do not even make the initial screening.
Reports have shown that only 14% recruiters have more than a minute to spend looking on a resume while one third of candidates spend over a minute reading a job description before moving on or deciding to apply. Recruiter spends at least 11 seconds on single resume and when it’s about reading thousands of resumes each single day, it is a painful task.Hiring a wrong candidate is even worse than no candidate. No company wants to hire a wrong candidate. Not only because they’ll need to find a replacement candidate sooner than they’d like but also because taking a unfit candidate drains energy and time and can cost a business in a number of ways. When a company hires a wrong candidate, it may find some personality conflicts between the new candidate and the existing members which cause your business to suffer. All that time spent on the freshly hired candidates will drain productivity.
Various Costs A Company Pays Due To Wrong Hiring:
Upfront financial impact
When a company hires an employee, it pays a competitive salary and also bears expenses along with other indirect cost like office expenses and training.. If company hires a wrong candidate and it simply let him or her leave, it may have to conduct a search for another employee and hire another replacement. The whole process need time, money and resource investment. According to Robert Half survey, 41% officials who hired wrong candidates estimated the financial cost of such hires in thousands of dollar. US Department of Labor researched that the cost of inappropriate hire can reach equal to 30% of the employee’s potential first-year earnings.
Organisations have claimed that wrong hiring cost the productivity and resulted in fewer sales. It was also observed that supervisors got to spend 17% of their time in managing the people performing poorly. This is approximately one day in a week
Morale Cost of Existing Employees
When you spend more time on the improvement of a newly appointed candidate, the existing members may become dissatisfied. When one team member requires so much of attention, it brings the whole team down. According to a Robert Half International survey, About 95% of the financial executives reported that making wrong hires also affected the morale of the existing team. Cohesiveness of the teams was also affected as unfitting hires do not mix-up or come along with other employees.
Sometimes a candidate can also cause loss of reputation to your organisation if he/she is hired for something they do not find themselves suitable. They develop a inappropriate attitude towards the work and fellow workers. A wrong hire, if unsatisfied, can source of undesired reviews on social media & Internet, we all know a negative spreads much faster than many positives.
There’s a Way out
An unsatisfied candidate can never be an asset for an organisation. He/she will ever be a burden for the company and cause financial losses. In addition, reputation loss and loss in team spirit and morale are also big factors which surely bring the efficiency of the team down. This can bring major loss to the company in terms of performance. Therefore organisations must take all possible measures to improve the efficiency of the hiring process. The Measures taken could be as small as redefining the standard operating procedures to adoption of artificial intelligence based automation platform of the screening of resumes.
Based in the City of London, Recruitment SMART is a HR tech startup on a mission to bring disruptive technology to the recruitment industry. They are developing Artificial Intelligence and Machine Learning based sourcing solutions. Team includes veterans from both the recruitment and tech industries and has client globally in UK, US and APAC. Feel Free to Write to us at [email protected]