Recruiting Costs Can Run Out Of Control:
Think about what happens when there’s an open position to fill. The first thing to consider is the necessity of someone having to be employed means that a certain area may not be handled, and there’s a task that isn’t being completed. It’s possible that this is unavoidable. Employees retire, move, and leave your business due to a myriad of reasons.
However, bear in mind that openings represent the work that must be accomplished. The way it is completed by you, others of your team or temporary workers, or by the person who’s ultimately employed full-time does not matter as each is a cost for your department or company.
Of course, these expenses aren’t that much compared to the cost of bringing in a brand new employee. However, before you contemplate that, you’ll need to find potential candidates. This is usually done by placing ads online or in the local paper or even attending job fairs or trade exhibitions. All of these cost money and add another challenge – sifting through resumes. Finding at least four or five qualified candidates among the hundreds of applications you’ll likely get requires time. It’s not an exaggeration to say that the majority of the managers I’ve spoken to have a shortage of hours available. This means they’re losing the most important resource, looking for the missing needle in the haystack.
Interviews and Resumes:
After resumes have been analyzed and a handful of potential candidates selected, interviews will begin. It typically requires two or three interviews to narrow the pool of candidates and select the right candidate, meaning more time is wasted in the process, which includes time spent with those who aren’t employed. Also, you can factor in hotel rooms, airfare and meals if you’re looking at candidates from different areas.
If the interviews went well, it’s time to make a hire. That’s when the costs begin to mount up. It’s possible that you’ve paid a small amount for advertisements, travel, and reduced productivity while searching for the perfect employee, but it’s not much compared to the money you’ll pay for if they aren’t successful. The highest cost is the new employee’s salary, which you’ll likely be paying for between six months and a year in the ideal scenario. In addition, you’ll be responsible for the benefits they receive, which are offered to several companies for fifty percent higher than an employee’s base salary.
It’s possible that these expenses aren’t that terrible, given that there is already someone filling the role. Be aware, however, that the majority of new employees at the very least several months to be fully integrated into the department and produce any significant productivity. You’re likely to be spending a lot of time learning them, either in conjunction together with other employees who might be in other places or with training materials that must be updated regularly with a price. Making sure that new employees are up to the latest technology is expensive; however, it’s necessary for the event that you want to make a profit from your investment.
Starting The Whole Process Over Again:
In the end, after several months, the new employee will begin to show signs of productivity. But what happens if they don’t? What happens if they aren’t a believer in the values of your business or aren’t motivated or simply prove to be unsuitable for the job? Now you’re left with two options that aren’t appealing of either having to start the entire process all over to start over or retaining the employee (and pay), which isn’t doing any good. Naturally, if you’re forced to choose the second option, you’ve squandered a significant amount of time as well as money. Additionally, since you’re probably going to desperately require a fresh face and you’re likely to be less selective with the next candidate, meaning that that you’ll get an underperformer.
I’m guessing that time and money are the main reason managers often choose to go with the second option of keeping the employee on their payroll. But I’d say this strategy is more most likely to end up costing you more in the long run. This is why being a person who’s not enthusiastic or isn’t a good team member working for you can bring down everyone with whom you conduct business. Employees are annoyed by the lack of enthusiasm or performance. Customers get bored of dealing with a person who’s not competent, and your plans and policies aren’t executed effectively.
Sales Territory Destruction:
When it comes to sales, we refer to this type of territory destruction. It’s the result of hiring people who aren’t able or don’t do their work in a proper manner that ultimately creates negative perceptions of your business. The most frustrating part is that you won’t be aware of the severity of the issue until it’s way too late. Sometimes an employee can perform so badly that a client or vendor or employees will either make contact with the manager to voice their concerns. Everyone hates getting such calls, but it’s superior to the alternatives.
In many instances, the people tell you the extent of their deplorable behavior until they’ve gone. They may be reluctant to come out since they don’t want to harm the relationship they have with you. Perhaps it’s they don’t want to engage in a heated discussion with their employee. Whatever the reason, they remain silent about their feelings or until the employee leaves your business, along with other employees and customers who didn’t want to witness the bad apple being removed.
Key Sales Management Point:
It’s a fact hiring errors can be very expensive, extremely costly. The best way to cut your expenses down and keep boost morale is to invest your time and effort in bringing the right person in the first time.