In today’s corporate world, a single wrong decision can cost you millions. So you cannot afford to ignore any indemnities you may incur from a single wrong hiring decision.Hiring mistakes include the cost of termination, replacement, time and productivity loss while new employees settle into their new job.
Hiring mistakes cost organizations dearly, the best option is to use employment testing services.
WHAT WRONG DECISIONS CAN COST
Termination Costs :
- Staff turnover can cost your organization up to $2000 for each individual, this includes:
- Final pay check, vacation and separation fees
- Increased unemployment tax
- Continued benefit costs
- Administrative costs for processing termination
- Exit interview
- Translation meetings
Replacement Costs :
- Hiring a new employee and training them for the job costs the company:
- Advertising, job posting and recruiting fees
- Interview expenses
- Marketing material consumables
- Pre - employment assessments
- Background checks
- Interim employee costs
- Medical exams
- Overtime costs
- Orientation and training programs
Vacancy Costs :
- Each vacancy in your organization can cost you dearly, You can calculate it as follows:
- Total annual company revenue per employee/number of = [a] workdays in a year (usually 240 - 250)
- THEN,
- [a] x number of workdays for which the job is vacant = [b]
- NOW,
- [b] – benefits for those workdays since they were not paid for = [?]
- This figure is the cost of every vacancy in your organization
As you can see these costs add up quickly so making mistakes is not an option. Brainmeasures Employee Testing Solutions help you hire the best people for your organization the first time, every time. After all, a company’s most valuable asset is its people.
