Procuring people. What’s the cost of getting it wrong?

Whether it’s for a start-up and this is employee number one or if there is a requirement for employing vast numbers of people an organization will always have direct costs relating to hiring and will decide whether to pay for advertising, marketing, career portal, external recruitment services or headhunting fees, assessment tests, visa’s etc etc.

The choice is there for an organization to spend as much or as little on these direct costs as they wish… but how little is too little?

It’s practically impossible to get it exactly right when hiring a person (or people) but investing time and money in developing sufficient process and procedures will increase the chance of hiring the best people in terms of cultural fit as well as ability and experience.

Finding a good balance between the cost of hiring the right people versus the cost of getting it wrong isn’t easy but when you take the time to really consider the hidden costs of making a hiring mistake then investing more time and money up front becomes a very worthwhile and necessary investment.

Hidden cost factors of a bad hiring decision;

  • Time spent hiring a replacement
  • Reduced morale of other team members
  • Disruption to clients
  • Investment in on the job training (internal and external)
  • Time taken from exit of previous hire to the replacement person reaching minimum standards to perform the job
  • Loss of confidential information
  • Damage to company brand
  • Additional work load for other employees

The list goes on and many are interlinked, but the actual cost of an employee leaving is not easily quantified as there are just so many additional factors to be considered, for example a key employee with a very specific skillset will have a greater impact when leaving an organization than that of someone in a role which is easily replicated. Smaller businesses will also be more affected by one person leaving than larger businesses.

I guess the best advice is don’t cut corners and always think about what could be the cost of getting it wrong.

Consider the hidden costs...
Beware of the hidden costs.

How does your organization calculate the cost of replacing an experienced employee?

I look forward to reading your comments.

Planning your personal route to market.

So you’ve decided its time for a move…

Before you even write your CV and commence your Job Search you should really have a plan in place.

A few very basic things to consider.

  • What’s the ideal job that you have enough experience for and the right qualifications to take on right now?
  • Which companies would you like to work for?
  • Where are they based?
  • Do they have a career portal?
  • Who are their competitors?
  • Which are the best online jobs boards to use in order to find the type of job you are looking for?
  • Who are the main recruiters which specialize in your area of experience in the region where you are looking to work?
  • Can you leverage the networks of any of your existing contacts, ex-colleagues, friends, social media or industry groups to help open doors and make connections with key decision makers at the companies you wish to work for?
  • Are your salary expectations realistic?

Be realistic.

  • Apply to jobs which you are definitely qualified & have relevant experience for
  • Be aware that the jobs market is constantly changing, especially in recent years. It could be that the package you earn today is already above the current market average
  • No one wants to go backwards but bear in mind the days of a 20-30% pay increase to move jobs are long gone

Stay Focused.

  • Think of your job search as a sales pipeline… you are the product!
  • Make a plan, set yourself targets and aim for quality of applications, not quantity
  • Track your activity (A good old Excel sheet will do just fine)
  • Once you have a plan in place and an idea of what you are aiming for you can tailor your resume to suit (Next Phase)

You can spend your time applying for thousands of jobs which aren’t quite right or spend the same amount of time applying for a smaller number of jobs where you absolutely have the right experience and therefore more chance of a positive response.

Its not a perfect science but get as close to the latter as possible and your potential for success has already increased!

Plan your personal RTM


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