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How to Save $165k+ on Your Next Hiring Campaign

It may sound counter-intuitive, but most hiring campaigns, even with high-end recruitment firms, rarely come close to costing $165,000. So how can you possibly save such a significant amount?

The answer is surprisingly simple.

Before revealing the solution, there's a catch. Many employers tend to dismiss the idea of saving $165,000 on their next hiring campaign, assuming it to be an exaggeration or an unrealistic claim. However, I propose a deal – keep an open mind and continue reading, because the numbers will prove the validity of this strategy.

Ready for the revelation?

You can save $165,000 on your next hiring campaign by avoiding a BAD HIRE.

Before brushing off this suggestion, thinking that bad hires don't cost you anywhere near this figure, consider the following scenario:

Let's imagine you hire a new Team Leader with a salary of $56,000. Despite their experience and skills, they prove to be consistently late, unreliable, and struggle to get along with your employees from day one. After eight months of trying to resolve the situation, you eventually decide to fire the Team Leader due to the stress they caused one of your best team members.

The true cost of this bad hire is as follows:

  • Salary (8 months): $37,333

  • Recruiter Fee: $8,346

  • Training: $2,333

  • Total: $48,012

But the impact doesn't end there.

Under this Team Leader's ineffective leadership, the productivity of the five team members they worked with dropped by 20%, resulting in an additional waste of $7,000 per employee.

  • Total: $35,000

Now, the total cost of this bad hire, including collateral damage, has reached $83,012.

And that's not all.

You must hire a replacement for the bad hire, incurring more expenses:

  • Recruiter Fee: $8,346

  • Training: $2,333

  • More lost Productivity (five months to find a top-notch replacement): $29,167

  • Total: $39,846

Now, the total cost of hiring mistakes has surpassed $120,000. But wait, there's more.

Remember the team member who took sick leave due to stress? They decided to take early retirement, leading to the need for their replacement:

  • Recruiter Fee: $8,346

  • Training: $2,333

  • More lost Productivity (five months to replace the experienced employee): $29,167

  • Total: $39,846

Finally, the business disruption from being understaffed caused you to miss out on a big contract with a new client, costing you $75,000.

Grand Total of direct and indirect costs: $282,704

It's astonishing how a hiring mistake can lead to such a costly effect.

To reassure yourself that your hiring mistakes aren't that expensive, you might be tempted to downplay the figures. However, bad hires can still have a substantial financial impact.

But fear not, there's a solution!

A high-quality recruitment campaign can significantly reduce attrition, resulting in substantial potential savings. By improving your retention rate, you can save a remarkable amount.

For instance, let's say 80% of your new hires remain in their roles after 12 months – which is already considered above average. Now, imagine if you could improve that figure by just 5% or 10%.

The savings, both direct and indirect, could be tremendous.

At Helmsman Group, our average retention rate for placements after 12 months is 96%, significantly reducing the risk of bad hires.

So, if your current recruiter's retention rate falls short of this or if you're uncertain about their rate, why not reach out to us? We offer a free review of your hiring strategy and can help you improve your retention rates.

To see your BAD HIRE numbers use our FREE calculator.

Don't let bad hires drain your company's resources. Take control of your hiring campaign and save substantial amounts for your organization's success. Book a free, no-obligation consultation with us HERE.

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