FibreHR Blog

We share some of our recruitment strategies in our blog. FibreHR, your people are our business.

The cost of bad recruitment

Lisa Spiden - Thursday, August 11, 2011

When workers are not a good fit for the job, the cost to a business can be significant. Productivity may decline for a number of reasons
and the impact in some cases may be long term. Here are just some of the ways that poor recruitment practices might impact a business financially:

  • Managers may have to spend more time supervising the new employee.
  • An employee with limited role-specific capabilities may take more time to become productive, and need extra training to build up their skills.
  • The performance of other workers within the team or department may be affected in the meantime.
  • Errors or delays may lead to client dissatisfaction.
  • Employee morale may be impacted.
  • Salary costs often represent a significant percentage of business overheads, so poor recruitment practices have the potential to make a big impact on profitability.

The cost of replacing a staff member can be high so businesses that have poor staff retention rates and low staff morale are likely to be paying a very high price for their practices. Good recruitment processes can be an essential element in business profitability – yet a survey by Chandler Macleod revealed that 6 out of 10 businesses did not have a documented recruitment plan.

Poor recruitment can affect your bottom line: Turnover of a staff member can cost the business up to 250% of the cost of the employee leaving (with sales impact, recruitment, training, onboarding, etc.) so it is important to retain your staff.  One way of hanging onto them is to ensure that you follow through on promises - failing to do so is one of the quickest ways to disengage staff.  For example, if you promise reviews in June - they need to be managed.  Finally the majority of staff leave because of their boss - not because of pay and conditions.  so you can strongly influence your productivity, turnover and output by effective people management and leadership.

Small to medium sized businesses without a dedicated human resources department may benefit from outsourcing recruitment tasks to a professional agency.

How to improve your recruitment process

Lisa Spiden - Thursday, August 11, 2011

Here are several helpful steps to improving your recruitment process, which are summarised below:

  • Identify the needs of the business: get a clear picture of your workforce.
  • Define the job: write a clear, concise and accurate job description.
  • Determine the selection criteria and attributes required for the position, and create a profile of the ‘ideal’ candidate.
  • Check the Award coverage.
  • Write a short advertisement, including salary range, and include any extra information which may help prospective candidates decide if they might be suitable.
  • Prepare for the interview: including who will conduct it, where it will happen and how much time is required.  Prepare questions, and review resumes beforehand.
  • Conduct the interview: ask one question at a time, use some open-ended questions, and let the candidate talk and probe for more information if required. 
  • Remember to check qualifications and references from former employers.
  • Make the decision: by analysing the previously determined criteria and applicants to find the best match.
  • Offer the job to the chosen applicant, using a clearly worded letter of offer.
  • Take the successful applicant through an induction process.
  • Monitor their performance at regular intervals and provide constructive feedback.