// More Together
Recruitment
Mistakes
hundred
I’ve made a few
Mr Impressive
Why people leave Aspire?
10% fail probation
34% other rec co
10% own biz
30% out of rec
10% relocate
6% other
70% of those...
The real cost of recruitment mistakes – cost per desk
• Annual NFI/NDR/GP per employee = opportunity cost of a desk
• Divi...
Aspire cost of recruitment mistakes – cost per desk
• Annual NFI/NDR/GP per employee = £102,786
• Divide by 52 for opportu...
Aspire cost of mistakes – FEE EARNING DESK
• Annual NFI/NDR/GP per employee = £132,933
• Divide by 52 for opportunity cost...
Mistakes we have made……..
….. more than once!
What we have tried
• RCQ – psychometrics
• Role plays
• Presentations
• Competency based interviews
• Values based intervi...
And finally
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Paul Farrer at July 2013 Directors Event

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Paul Farrer has spent the last 20 years helping build the Aspire Global Network (established originally as Phee Farrer Jones in 1992) with six specialist recruitment brands. He has recruited hundreds of recruiters over these years and shares some of the mistakes he has made; what they've cost the business and the lessons learned.

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Paul Farrer at July 2013 Directors Event

  1. 1. // More Together Recruitment Mistakes hundred I’ve made a few
  2. 2. Mr Impressive
  3. 3. Why people leave Aspire? 10% fail probation 34% other rec co 10% own biz 30% out of rec 10% relocate 6% other 70% of those who joined other recruiters – were on performance objectives. 40% joined competitive companies 100% of new employers didn’t request a reference 7 were recruitment mistakes
  4. 4. The real cost of recruitment mistakes – cost per desk • Annual NFI/NDR/GP per employee = opportunity cost of a desk • Divide by 52 for opportunity cost per week • Multiply by number of weeks desk is vacant = base cost • Add recruitment costs = any R2R fee, add costs + management time • Add induction costs = management time • Add weeks taken to bill • Add annual NFI/NDR/GP per employee less billings • = Real Cost
  5. 5. Aspire cost of recruitment mistakes – cost per desk • Annual NFI/NDR/GP per employee = £102,786 • Divide by 52 for opportunity cost per week = £1977/wk • Average Number of weeks desk is vacant = 5 x 1977 = £9885 • Add recruitment costs = possible R2R fee + management time • Add induction costs = management time • Add weeks taken to bill = 10 x 1977 = £19,770 • Add annual NFI/NDR per employee (£102,786) less billings (av £95,692 1st 12 months) = £7093 • Real Cost per hire = £36,748 • Of which 7 replacements were recruitment mistakes = 7 x £36,748 = £257,236
  6. 6. Aspire cost of mistakes – FEE EARNING DESK • Annual NFI/NDR/GP per employee = £132,933 • Divide by 52 for opportunity cost per week = £2556/wk • Average Number of weeks desk is vacant = 5 x 2556 = £12,780 • Add recruitment costs = possible R2R fee + management time • Add induction costs = management time • Add weeks taken to bill = 10 x 2556 = £25,560 • Add annual NFI/NDR per employee (£132,933) less billings (av £95,692 1st 12 months) = £37,241 • Real Cost per hire = £75,581 • Of which 7 replacements were recruitment mistakes = 7 x £75,581 = £529,067
  7. 7. Mistakes we have made…….. ….. more than once!
  8. 8. What we have tried • RCQ – psychometrics • Role plays • Presentations • Competency based interviews • Values based interviews • Team drinks • Reference Checking • Linkedin Profile v CV • HR Director does ALL 1st interviews
  9. 9. And finally

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