Recruitment: 3 big hiring mistakes that cost time and money

Beef Central, 05/04/2013

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JUST how cost-effective and time-saving is your recruitment process?

These common mistakes can set companies, both large and small, back thousands (or even millions) of dollars each year.

Worst of all, big mistakes in the hiring process mean you’re probably missing out on the talent you desperately need in your business.

To save time and money, here are three common mistakes employers should avoid:





Not encouraging employee referrals

The benefits of hiring internal referrals (recommendations from existing staff members) are three-fold. Referrals tend to last twice as long, perform better (when you work with someone who actually referred you to the business, you would want to demonstrate that you are a great fit), and are more likely to have a better understanding of the company culture before signing on the dotted line.

So, if an employer is not investing in an employee referral program, they’re potentially missing out on talented and loyal employees.


Scrambling to fill a role

Don’t wait until you desperately have a recruitment need before starting to look for candidates. Rather, the best time to be sourcing is when you have fewer jobs to fill and are under less pressure. Procrastinating may be detrimental to your cost-of-employment – after all, recruiting the right person may take anywhere from 30 hours to more than 100 hours per position.

Stay in touch with potential candidates, send them your company or business news, industry alerts and articles you think they would be interested in. A great way to keep track of your pipeline is through a CRM program which allows you to add notes to your candidate files.

Passive candidates are not going to readily apply to your job openings; you need to find a way to build meaningful, long-term relationships with your talent pipeline.

After all, you are selling them your brand alongside the prospect of working within your business. You want your ‘brand’ to stay in top of mind – much like how you would want your customers to think of you. Ultimately, everyone who connects with your business can become an advocate.


Valuing direct experience more than cultural fit

Skills are important; no one dismisses good qualifications. But in today’s flooded job market, there’s something to be said about finding a candidate who will fit into your company culture. Employee turnover is costly, and ill-fitting employees are more likely to pack their bags.

Again, employee referrals are a great source for finding like-minded individuals who will enjoy working in a culture where they naturally fit in.


AWX Director, Cameron Dart said, “While it is not necessarily easy to hire the best, by taking these three points into consideration as part of your hiring process, you’ll protect your bottom line and attract the top talent you need to move your business forward.”

“The costs and impact associated with an employee who leaves the business can be quite significant,” Mr Dart said.

While many businesses focus on the bottom line and look at worker productivity, employers cannot afford to ignore the money drain of an inefficient hiring process.




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