Employers who fail to hire the right management could end up costing the organisation $60,000, according to talent acquisition firm, Futurestep.
While there are many indirect costs that an employer faces with all new recruits, the more senior the hire, the more costly it could become.
Matt Dale, head of consulting at Futurestep, said that many organisations only think of the direct costs associated with employing staff, such as advertising and agency fees.
“There are also indirect costs like the HR/recruitment team, hiring manager time, technology costs, induction costs and the loss of productivity while they get up to speed.
“Then there is also the costs incurred if a new hire leaves within their first three months, as commonly happens with bad hiring methods. The firm then has the opportunity costs of having an empty chair, when in many sectors, the market is turning.”
Dale said that cutting turnover costs of lies in an organisation's approach to this increasingly complex arena. In some instances it makes sense to pay a specialist to fill a really difficult role.
In other instances, the solution lies in how the company actually goes about recruitment and structures its recruitment team, he said.