January 10, 2018

How much it costs you to hire the wrong person

How much it could cost

One of the biggest implications in hiring the wrong person is the immediate financial one: the costs associated with the initial hire, the cost of severance and having to start the process again to hire a replacement.

A recent CIPD report highlighted that on average it can cost £8,200 to recruit the wrong person and can be more than £12,000 for a senior position.

Those are just the direct, tangible costs. A wrong hire can also affect staff morale, cause internal unrest and reduce productivity.

If the employee in question is in a senior position or public-facing, it can tarnish the reputation of your business – something that can take years to build but only moments to destroy. The media is full of these examples.

How to hire the right person

There are plenty of steps that employers have in place to try to ensure they select the right candidate. Depending on the level of the role, this can range from assessment centres, interview stages and psychometric tests to ensure they are capable to do the job.

However, it is becoming increasingly important that pre-employment checks need to be an integral part of the recruitment process. Whilst the candidate on paper can look strong, and may sail through the interview process, a thorough background check could unearth important information which could make you reconsider your decision to hire them.

As an example, Core-Asset Verify’s own research has found that on average 28% of candidates embellish their qualifications on their CV and 16% inflate their job title in an attempt to impress a prospective employer.

Research by Higher Education Degree Datacheck (HEDD), a government service, found that only 20% of employers verify applicants’ qualifications with the relevant awarding body, relying instead on CVs or certificates provided by the candidate.

In the wake of more heavily regulated industries such as financial services, more and more companies from other sectors are now adopting a ‘best practice’ approach and implementing robust and transparent pre-employment checks.

Candidate vetting is no longer a nice-to-have or a simple box-ticking exercise. Finding out exactly who you are about to hire has never been more important.

Jenny Smith, Client Relationship Manager, Core-Asset Verify


Related article

Falsification of Qualifications Top Reason for Employment Check Failures
The most common cause of failed pre-employment checks is candidates making false claims about their qualifications, according to research by Core-Asset Verify.
Read More