It might sound counter-intuitive and most recruitment rounds don’t come anywhere near £85,000 to run; even if you’re using the highest-end advertising site and a recruitment agency.
So how can you possibly save that much next time around?
It’s simple really.
You can save £85,000 on your next recruitment campaign by avoiding a BAD HIRE.
Again, the natural assumption is there is no way it costs that much, but let’s break it down.
New Senior Hire salary: £60,000.
Whilst experienced and highly skilled, they’re often late and have struggled to settle in to the team. They just werent the same person you met at interview.
You try your best to resolve the situation, but when one of their team takes six weeks off due to stress caused by their line manager (your new hire) you know there’s a need for change!
The new hire leaves the school after just eight months. It happens to the very best of schools, and whilst the right decision was made, it still has massive implications.
8 months salary: £37,000
This hire has left your team in a worse position than before they joined and you’ve paid out £40K. But what about the collateral damage?
Under this person’s management, three of their team saw their productivity drop by 20%. Assuming they were each on a £40,000 salary, that’s another £5,600 of waste per head.
Cost of diminished productivity: £16,800
That’s more than £50,000 in costs and you now need an urgent replacement. You turn to your regular supply agency who think they can find you someone.
Agency Fee – 15%: £9,000
You’re now over £60,000 in costs and remember that person on stress leave? They have made the decision to take early retirement and that leaves another gap. You need to replace them as well.
Sickness cover – 5 months: £17,000
Agency fee for new hire: £6,000
Total cost: £23,000
Grand Total of Direct and Indirect Costs: £85,000
Now, we know that not every bad hire will cost quite this much, but this isn’t the worst case scenario either…far from it in fact.
What if your supply agency don’t find someone? What if they find you someone that costs more? Or even worse what if that hire doesn’t work out?
Bad hires can be avoided with a high-quality recruitment campaign that significantly reduces attrition, and the potential savings on time, productivity as well as cost, can be spectacular.
What if 80% of your new hires were still in their role after 24 months. That would be way above the national average and great for the school.
What if that could be 90%? Or even higher…the direct and indirect savings would be tremendous.
At M/LK Education Search our current retention rate is 96% within the first 24 months!
Ask your current agency what their retention rate is for the same period. If it’s less than 96% (that’s our average) or, even worse, they don’t know, why not give me a call and we’ll see what we can do to help you next time around.
For a free review of your current hiring process and support to improve retention rates, book a free, no-obligation, consultation with our team.
Drop our Director of Operations, (South), Greg Bookman an email on: greg.bookman@mlk-search.co.uk
Or call him to arrange on: 07793 209 744. Click here to view our website for more info on our process.
