Running them will lead to failure.
Walking them will lead to failure.
It’s all about pacing and the same rings true for recruitment. Fast recruitment may seem like the best option to fill that gaping hole in your organisation. Slow recruitment may seem like the best option to play it safe and get that perfect candidate.
The best option is neither.
Let’s look at the cost of a vacancy. A Harvard study has found this to be three times a person’s salary. This calculation takes into consideration team impact, increased management time and a variety of other factors meaning these figures are well processed estimates.
Registered Care Manager
Salary of £28,000
Harvard Multiplier = £84,000
Divided by 232 work days = £362 p/d
We can then break this down to calculate lost revenue:
£362 p/d or £2534 lost revenue per week
On average it takes 12 weeks to recruit meaning:
12 x £2534 = £30,408 lost revenue.
You would then add potentially 20% in agency fees.
This means for every 4 weeks you can reduce your recruitment time by, you could add £10,136 to your revenue. It therefore seems like a quicker hire is the best hire, after all you are reducing the lost revenue duration.
This is not the case, think back to pacing. If a marathon runner runs too fast, he or she will burn out. Quick isn’t always the best.
Say we used the same vacancy but the position is filled within 6 weeks:
6 x £2534 = £15,204 lost revenue per week
+ agency fees = 20% of wage = £6081
However due to the position being filled under pressure to fill quickly, the probability of finding the wrong candidate is increased. For arguments sake let’s say this results in a dropout. The vacancy then needs refilling and let us assume another 6 weeks is spent.
This means the total of filling twice at a combined total of 12 weeks = £37,502
Against filling once at 12 weeks = £36,489
As you can see, spending time to fill a vacancy will in the long run reduce risks of dropouts and finding a new candidate. I have used this as an example, however you would expect a recruiter to spend more than 6 weeks on their second time filling a vacancy if they failed the first time, meaning the cost would actually be greater.
Just remember, steady wins the race!
We recommend before even spending one penny recruiting, that you try out these 21 free forbidden secrets recruiters don’t want YOU to know about. Click here
At turro, we work hard to find you quality candidates. From marketing, to searching our extended database and sourcing using our breakthrough methods, to interviewing every candidate over skype and making them undertake detailed psychometric testing, we make sure we place you best and only the best. For more information visit https://turro.co.uk/