Job defections cost the average Australian company (with 100 employees) an estimated $337,000 per year, according to research.
This total includes the management, separation, training, productivity and morale costs in hiring the 10 new employees, which can cost up to $307,000, while recruitment agencies may add an additional $75,000 to the replacement spend (up to 15% per employee).
Australia’s recruitment industry is worth an estimated $3 billion each year and is quickly being transformed by the advent of new technologies. Managing Director of Expr3ss!, Dr Glyn Brokensha, said “Job losses and traditional recruitment methods are costing companies of all sizes billions of dollars per year, which is a tragic waste. Companies need to become more scientific in their recruitment practices by using online tools to cull the thousands of applications they attract through online job boards”, he said. “Traditional methods of judging an applicant on their resume, presentation, skills and experience are becoming redundant as applicants are becoming sophisticated in developing resumes and expressing themselves to hide their weaknesses and inflate their strengths in job interviews”, he added.
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