One of the main reasons companies refuse to use Recruitment agencies is the cost, and we completely get it! At first glance, it can certainly look like a big expense but I wanted to share with you some information on the true cost of a bad hire.
A report from the Recruitment & Employment Confederation (REC) revealed that a poor hire at a salary level of £42,000 could end up costing a business over £132,000. This staggering figure includes expenses related to recruitment, training, onboarding, wasted salary, and more.
Of course, nobody sets out to make a bad hire but there are several factors why this can happen.
- Urgency: 1 in 3 companies report bad hires occur because they need to fill the position quickly.
- Limited Talent Pool: Another third blame the small pool of available talent.
- Lack of Awareness: 1 in 5 HR professionals don’t know how much a bad hire costs.
Many businesses don’t have the time for thorough recruitment campaigns, so they often skip detailed background checks, references, and skills assessments. Additionally, the limited talent pool often means missing out on passive candidates who aren’t actively seeking a job but might be open to new opportunities. When just one or two key people make the hiring decisions, it often leads to bad hires due to a lack of collaboration in the recruitment process.
But what about the other costs of a bad hire? As well as financial burden, there are often other immeasurable costs.
Monetary Costs:
- Wasted salary
- Training expenses
- Loss of business
- Rehiring costs
Non-Monetary Costs:
- Low Morale: Team conflicts can lower morale and productivity.
- Increased Staff Turnover: Good employees might leave if a bad hire negatively impacts their work environment.
- Overburdened Teams: During rehiring, current employees may need to pick up the slack, adding unnecessary stress.
- Damage to Reputation: A bad hire can hurt your company’s reputation and lead to lost business.
So, let’s look at the statistics…
- Up to 33% of new employees do not pass their probation period
- In 2024, Accountancy Action candidates have had a non-pass rate of 5%
Let’s look at that slightly differently…
- Hire direct = 67% chance of success
- Hire through us = 95% chance of success
Partnering with a dedicated finance recruitment agency can significantly increase the chance of success and reduce the risk of a bad hire.
We ensure that all candidates are thoroughly vetted and verified before they begin their role and not to mention, we have access to a larger talent pool, including a database of approximately 30,000 finance professionals, extensive social media networks, and finance-specific job boards.
We also use a unique video platform that lets you see the candidates first before interviewing them so you can assess their soft skills and if they will fit well in the team. All of this allows us to respond quickly and effectively, no matter how urgent your hiring needs are.
Overburdened HR teams already have enough on their plates without the added stress of recruitment. Let us take the weight off your shoulders.
Don’t risk the chance of a bad hire. Get in touch today to find out how we can support your recruitment needs.
Still worried about the cost? We have many different payment options available including a pay monthly service that allows you to spread payments over 12 months. We couldn’t make it any easier.
Contact any of us today to discuss your needs
Georgia – 07387387583
Mark – T: 020 7462 0003 M: 07534 153 556
