Organisations are potentially wasting up to £13,500 per hire by using ineffective and out-dated recruitment methods.
That’s according to peer-to-peer recommendation firm AnyGood? Its review of collated data has revealed that businesses could save an estimated £8,500 for a senior level hire by switching to a peer-recommendation recruitment process. This figure jumps to £13,500 for C-Suite professionals.
When looking at the contingent workforce, managers could be wasting a staggering £13,500 by using overly-expensive third parties to source contractors for a year long project, with shorter contracts potentially costing a company £3,500 more than necessary.
Juliet Eccleston, Co-Founder of AnyGood? said: “As part of my experience in programme management I’ve 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.
“When we also consider that a wrong hire has the potential to cost your firm £132,000, 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.
“And it’s 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 person’s 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, we’ve seen the hiring process from initial recommendation through to job offer take as little as two weeks – and that includes multiple interviews!
“It’s clear to me that there’s an excessive amount of wastage in far too many recruitment processes at the moment. While we’re seeing examples of people leveraging things that they previously didn’t consider of value in their personal lives – Uber and Airbnb tapping into the financial benefits of empty rooms or spare seats in a car, for example – there’s little such innovation on a professional level. For businesses, now’s the time to clean up their hiring and take a more strategic and efficient approach to talent sourcing.”