The average cost of an erroneous hire at mid-manager level (salary: £42,000) can cost a business more than £132,000 to rectify, according to the Recruitment and Employment Confederation (REC). This is generally due to training costs, resourcing new Candidates and periods of low productivity whilst adjusting. But don’t worry, this can be avoided right from the start.
The good news is, with the vast proliferation of Artificial Intelligence (AI) and psychometric testing, it has never been more scientifically viable to predict future Employee performance before you have even made a hire; thereby improving cost-effectiveness!
Chances are if you aren’t using software during a hire, you may be the odd one out. Statistics show that Applicant Tracking Systems (ATS) or ‘CV cyborgs’ if you prefer, can now streamline up to 75% of CVs before they’ve even been read. The analysation of keywords in a CV can be a really useful tool to find Candidates that are really relevant to your role.
Additionally, a recent report by the Chartered Institute of Personnel and Development (CIPD) concluded that over half of organisations are using people data to make business decisions. However, with only a third of HR team members being classed as ‘experts’ in people analytics, training and development is highly advised to make the most of this great tool and to get ahead of your competition.
If, as a business, you want to keep things more human, that’s perfectly understandable. Here at Allen Associates, we also believe in the importance of human interaction and judgement whilst sourcing the top tier Candidates. This has led us from 20 years of success into our new London office. However, there is a top tip you can take directly from people analytics to aid your personal approach.
People analytics are intrinsically linked to company culture. Research indicates that just a five per cent increase in employee engagement due to enjoyment of work is linked to a three per cent increase in revenues, and it’s clear there are some great boosters that can be put in place after your hiring period. Some examples could include: mentoring schemes, progression programmes, training and development and team events, not to mention perks and incentives.
The ongoing benefit of tracking Employee performance is that it doesn’t stop at the hiring process. In fact, you can even have an impact on your Employee retention in the long run. By analysing Employee behaviour, productivity and work quality, you quickly get a sense of where to invest your money and who to progress further.
Not only is this lowering risk, it’s setting a benchmark for other staff to work towards and progress themselves. By applying scientific methods, alongside human analysis, you can simplify your hiring process and will soon boast the top talent that will be the envy of your competitors.
Over the last 20 years, we have grown as a business to become one of the leading independent Recruitment agencies in Oxfordshire, and in 2018 opened our first London office, to service Clients in the capital.
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