The Shocking True Cost Of A Bad Hire
1
In 2013 It’s a problem that costs UK businesses OVER £4.13 BILLION PER YEAR £50 NOTE DIMENSIONS THE TRUE COST OF A BAD HIRE THE TRUE COST OF A BAD HIRE SO WHAT’S THE TRUE COST OF A BAD HIRE FOR A £100K PER ANNUM EXEC… £4.13 BILLION 933.38m TO PUT THAT INTO CONTEXT: BURJ KHALIFA 830m THE GHERKIN 180m THE SHARD 308m BIG BEN 96m 156 mm 85 mm 0.113 mm 62% of UK employers reported a bad hire. "As a business owner or manager, you know that hiring the wrong person is the most costly mistake you can make." Brian Tracy Entrepreneur and Author THE UK 1 YEAR BAD HIRES + + £30,000 Cost of new recruitment search £100,000 Up to a years salary £7,500 Car Allowance £5,000 Pension £15,000 Company bonus £9,000 Wasted investment in that person... • Induction: £4,000 • Computer and phone: £1,000 • Conferences and training days: £4,000 £100,000 Decrease in sales £18,000 Negative impact on client relations £37,000 Fall in team morale KNOCK ON EFFECTS BENEFITS SALARY SOURCING £1,500 Health Cover = £355,100 £30,000 Cost of original recruitment search £2,100 Time wasted interviewing WWW.EXECUTIVESONLINE.CO.UK 01962 893 300 [email protected] LINKEDIN.COM/COMPANY/EXECUTIVES-ONLINE TWITTER.COM/EORECRUITMENT RESOURCES: https://www.linkedin.com/pulse/article/20130816200159-131079-employee-retention-now-a-big-issue-why-the-tide-has-turned http://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/ http://www.signium.com/Portals/31/Ireland/Documents/ARE%20YOU%20GAINING%20BY%20RETAINING.pdf http://www.hrgrapevine.com/markets/hr/article/2014-02-24-high-staff-turnover-costing-business-4billion#.VD5Gx-fDlu http://realbusiness.co.uk/article/19693-what-is-the-cost-of-a-bad-hire http://theundercoverrecruiter.com/hiring-revolution-infographic/ https://www.linkedin.com/pulse/article/20130716151946-2967511-the-high-costs-of-a-bad-hire-and-how-to-avoid-them http://www.moneysavingexpert.com/insurance/cheap-health-insurance http://www.payscale.com/research/UK/Job=Human_Resources_(HR)_Manager/Salary http://www.payscale.com/research/UK/Job=Sales_Director/Salary http://www.payscale.com/research/UK/Job=Chief_Executive_Officer_(CEO)/Salary WANT TO LEARN MORE? Check out our ‘Talent Gamble’ Slideshare to find out more at: http://bit.ly/talent-gamble OR WHAT MAKES MORE SENSE? A bad exec hire can cost you 3.5 : 1 while a successful exec hire can make you 50 : 1 (a net effect of 53.5). A focus on cost rather than ROI leads to costly bad hires. +50 -3.5 1 BAD HIRE CAN COST 1 GREAT HIRE CAN MAKE The Talent Gamble
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Transcript of The Shocking True Cost Of A Bad Hire
In 2013
It’s a problem that costs UK businesses
OVER £4.13 BILLIONPER YEAR
£50 NOTEDIMENSIONS
THE TRUE COSTOF A BAD HIRETHE TRUE COSTOF A BAD HIRE
SO WHAT’S THE TRUE COST OF A BAD HIRE FOR A
£100K PER ANNUM EXEC…
£4.13BILLION933.38m
TO PUT THAT INTO CONTEXT:
BURJKHALIFA
830m
THEGHERKIN
180m
THESHARD
308m
BIGBEN96m
156 mm
85 m
m
0.113 mm
62%
of UK employersreported a bad hire.
"As a business owner or manager, you knowthat hiring the wrong person is the mostcostly mistake you can make."
Brian TracyEntrepreneur and Author
THE UK 1 YEARBAD HIRES
+ +
£30,000Cost of newrecruitmentsearch
£100,000Up to a yearssalary
£7,500Car Allowance
£5,000Pension
£15,000Company bonus
£9,000Wasted investmentin that person...
• Induction: £4,000• Computer and phone: £1,000• Conferences and training days: £4,000
£100,000Decrease in sales
£18,000Negative impacton client relations
£37,000Fall in teammorale
KN
OC
K O
N E
FFE
CT
SB
EN
EFI
TS
SA
LA
RY
SO
UR
CIN
G
£1,500Health Cover
= £355,100
£30,000Cost of originalrecruitmentsearch
£2,100Time wastedinterviewing
WWW.EXECUTIVESONLINE.CO.UK
01962 893 300
LINKEDIN.COM/COMPANY/EXECUTIVES-ONLINE
TWITTER.COM/EORECRUITMENT
RESOURCES:https://www.linkedin.com/pulse/article/20130816200159-131079-employee-retention-now-a-big-issue-why-the-tide-has-turnedhttp://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-are-signi�cant-business-costs-to-replacing-employees/http://www.signium.com/Portals/31/Ireland/Documents/ARE%20YOU%20GAINING%20BY%20RETAINING.pdfhttp://www.hrgrapevine.com/markets/hr/article/2014-02-24-high-sta�-turnover-costing-business-4billion#.VD5Gx-fDluhttp://realbusiness.co.uk/article/19693-what-is-the-cost-of-a-bad-hirehttp://theundercoverrecruiter.com/hiring-revolution-infographic/https://www.linkedin.com/pulse/article/20130716151946-2967511-the-high-costs-of-a-bad-hire-and-how-to-avoid-themhttp://www.moneysavingexpert.com/insurance/cheap-health-insurancehttp://www.payscale.com/research/UK/Job=Human_Resources_(HR)_Manager/Salaryhttp://www.payscale.com/research/UK/Job=Sales_Director/Salaryhttp://www.payscale.com/research/UK/Job=Chief_Executive_O�cer_(CEO)/Salary
WANT TO LEARN MORE?Check out our ‘Talent Gamble’ Slideshareto find out more at:
http://bit.ly/talent-gamble
OR
WHAT MAKES MORE SENSE?
A bad exec hire can cost you 3.5 : 1 while a successful exec hirecan make you 50 : 1 (a net e�ect of 53.5).
A focus on cost rather than ROI leads to costly bad hires.
+50-3.5
1 BAD HIRE CAN COST 1 GREAT HIRE CAN MAKE
The Talent Gamble
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