How to avoid the cost of bad hiring

April 5, 2016 in News for Clients

How to avoid the cost of bad hiring

Not only will a bad hire put a significant dent in your company cash-flow, it can impact on team morale, waste man hours and damage the reputation of the senior staff responsible.

But, with the right measures in place, you can ride the turbulence of recruitment in the aviation industry and significantly reduce the risk of a bad hire, bringing continuity to your recruitment processes.

What constitutes a ‘bad hire’?

Minimal time spent in role

The less time a person spends in a role, the greater the loss of investment in interviewing, hiring and training become in proportion.

Failure to add value to the company

A new hire should energise your team and improve the overall performance of your business. If they can’t perform their primary duties in a competent and efficient manner, they become a bad hire.

Lack of proper certification

Vetting candidates can take weeks, especially in the aviation industry. So, if they leave it until after the interview to inform you that they don’t possess the right qualification, licence or performance record, then you’ll end up out of pocket.

How much does a bad hire cost?

Aviation companies reduce their employment overheads as they increase in size, so there’s no single set figure. However, even larger companies will be left severely short-changed by the cost of a bad hire.

Initial capital investment

Capital investment for a new employee goes far beyond their salary. Costs soon stack up when you start considering other factors, such as:

  • Job advert creation and promotion
  • Hiring a recruiter
  • Time taken up by multiple rounds of interviews
  • Vetting and background checks
  • Employer’s National Insurance
  • Pension contributions
  • Benefits

According to the CIPD, recruitment costs at a company of any size account for £4,000 – £10,000 of investiture alone, depending on the seniority of the role.

Recruitment expert Bradford Smart estimates the true cost of a bad hire to be anywhere from 4 to 15 times the employee’s annual salary, depending on their position within the company.

How can you avoid the cost of a bad hire?

Recruit when the market is right

If you work in an industry that is affected by seasonal transition or unforeseeable events, such as the aviation industry, your recruitment process should begin when candidate demand is at its lowest.

Proactive candidate management

Before you commit to a recruitment drive, work out your intended RoI so that you can assess performance later on. If there are immediate question marks over the value of a new employee, it’s better to take action as quickly as possible.

Partner with a recruitment agency

Most aviation-related companies can’t afford the 128 hours it takes on average to secure a new employee, even with dedicated in-house recruitment staff.

A proactive aviation recruitment and resourcing agency allows you to be consistently scouring the market for the top candidates in the industry, and prevent you from having to make a last-minute decision if a vacancy suddenly opens up. Plus, if you require a high volume of staff for a transitionary arrangement or seasonal need, an agency solution is scalable to ensure there is no loss in candidate quality.

Your recruitment strategy is one of your company’s most important assets. Find out how AeroProfessional could save your company the cost of a bad hire.

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