Organisations are potentially wasting up to ยฃ13,500 per hire by using ineffective and out-dated recruitment methods.
Thatโs according to peer-to-peer recommendation firm AnyGood? Its review of collated data has revealed that businesses could save an estimated ยฃ8,500 for a senior level hire by switching to a peer-recommendation recruitment process. This figure jumps to ยฃ13,500 for C-Suite professionals.
When looking at the contingent workforce, managers could be wasting a staggering ยฃ13,500 by using overly-expensive third parties to source contractors for a year long project, with shorter contracts potentially costing a company ยฃ3,500 more than necessary.
Juliet Eccleston, Co-Founder of AnyGood? said: โAs part of my experience in programme management Iโve learnt to identify wastage in processes and procedures and it struck me that a lot of time and money is lost during recruitment due to the use of quite frankly inefficient and out-dated methods. Given how well connected we all are and how valuable a professional recommendation is, it simply makes no sense to hand over large sums of money to an outsourced recruiter in the hope that they can find the right candidate.
โWhen we also consider that a wrong hire has the potential to cost your firm ยฃ132,000, trusting an agency to source a professional who is the perfect fit for you with little to no previous engagement with them is a gamble that should be avoided.
โAnd itโs not just finances that can be wasted. The average time to hire is 27.59 days. The simple fact is, we are operating in a world where immediacy is not only crucial, but also possible. We can instantly interact with people online and we can find out key information on a personโs career through LinkedIn in seconds. Spending a month sourcing candidates for a role is a complete waste of resources that should and can be rectified. In fact, through the use of peer-to-peer recruitment, weโve seen the hiring process from initial recommendation through to job offer take as little as two weeks โ and that includes multiple interviews!
โItโs clear to me that thereโs an excessive amount of wastage in far too many recruitment processes at the moment. While weโre seeing examples of people leveraging things that they previously didnโt consider of value in their personal lives โ Uber and Airbnb tapping into the financial benefits of empty rooms or spare seats in a car, for example โ thereโs little such innovation on a professional level. For businesses, nowโs the time to clean up their hiring and take a more strategic and efficient approach to talent sourcing.โ