The Hidden Costs of Recruitment Processes
When thinking about hiring costs, many HR teams and hiring managers think of the advertising cost, recruiter fees, and onboarding. However, when we consider the recruitment process as a whole and the implications of drawn-out, failed, or aborted processes, the elements listed above are the tip of the iceberg.
Here are some of the hidden costs that companies should keep in mind when thinking about recruitment:
* Second choice candidates – Good candidates don’t stay on the market for long and generally favor decisive employers, so a slow or disorganized recruitment process increases the likelihood that the better/best candidate(s) will be hired by a competitor before you are in a position to make an offer.
* Project delays – A competent candidate not being hired and onboarded to schedule can result in significant costs to the business.
* Increased churn – Delays in hiring can result in greater workloads or stress for other members of the team, which in turn leads to employees who were previously content in their roles becoming active candidates.
* Wasted time – There is a time cost to reviewing CVs, preparing for interviews, interviewing, providing feedback, etc.
* Reputational damage – Poor recruitment processes can damage an employer’s reputation, making it harder and more expensive to attract good candidates in the future.
Companies that recognize the hidden costs of recruitment are more likely to offer realistic budgets for hiring candidates of the caliber they want, put in place a timeline for the recruitment process, and stick to that timeline.
To reduce recruitment costs, consider the following:
* Educate everyone involved about the hidden costs of recruitment;
* Consult anyone who can veto the hire on the final brief and the recruitment timeline before setting it in stone;
* Ensure that budget is ringfenced for the hire and that diary slots are booked in everybody’s calendars for CV reviews, interview prep, interviewing, and interview feedback;
* Communicate regularly with everyone involved to remind them of the timeline.
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