05/03/2023
Do you count the losses caused by ineffective recruiting processes?
Some managers think that only the recruiter's salary or the commission of the agency is the company's expenses, but in fact it is not so at all. When the recruiting process is ineffective, the loss is much greater, but not always obvious.
How to define the losses? I'm gonna list two categories below.
1. Time spent by the company owner, hiring manager and interviewing team.
Even if it seems that you have wasted several hours due to inefficient processes and wrong approaches, and it does not seem to have much impact on your company. But it has.
Time the company owner could have spent strategizing for growth and increasing profits, time the hiring manager could have come up with a better solution for the project, time the team could have spent getting things done more efficiently, all of this slows down the revenue growth of the whole company.
2. Lost profit due to a damaged reputation.
This is usually never considered as a loss by any company.
However, this is a mistake.
Why?
The time spent by candidates on a bunch of unnecessary interviews, assignments that did not make any sense, moreover, were not paid, poor communication with the team - all these make an impact on your reputation that costs money in the future. A reputation that is easy to spoil and difficult to restore. You spend an additional amount of money on marketing, advertising, search, new positioning, which could be spent much more effectively, having a good reputation and brand. Make it so that even the candidates you rejected tell everyone what a cool company you have despite the rejection and you don't have to spend that extra money.
