The answer to the above question is “more than £130,000” according to a new report Perfect Match: Making the Right Hire and the Cost of Getting it Wrong from the Recruitment and Employment Confederation (REC).
According to the report, a significant majority (85%) of HR decision-makers admit that their organisation has made a bad decision in this area, the research reveals.
Somewhat surprisingly, a third of those who responded said that the mistakes cost their business nothing.
Yet by identifying the hidden costs involved in bad recruitment — including money wasted on training, lost productivity and increased staff turnover — the REC calculates that a poor hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000.
With data showing that over 40% of hires prove to have been bad decisions within 18 months, the REC estimates that UK businesses are wasting billions every year employing the wrong people.
Getting recruitment right is even more important during a time of economic uncertainty and skills shortage, because businesses need to ensure they are not wasting money.
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