Recruiting is a tedious process. The company spends relentless time and effort in hiring the right candidate. The whole recruitment process involves half a dozen people and time spent on application sorting, scheduling, interviewing, doing reference checks, etc. After doing the selection process and finally recruiting a candidate, you realize after a few months that the candidate is a misfit for the company. This blog highlights the cost of mis-hire in a company and all you need to know about working with an experienced recruiter.
Severe Impact of Mis-hire in Product Management:
Recruiting cost is divided into various sectors. The company spends money on job advertisements, posting attractive job openings on Linkedin, its website, and other social media platforms. The company also invests in Human Resource management. If required, it gives them a monthly salary and the cost of hiring an external headhunting firm in NYC for headhunters. Below is a breakdown of a company’s cost while mis-hiring team members.
Recruitment Cost:
The product management organization makes A significant investment in the recruitment process. Firstly, effort and cost are spent in advertising the job. They inform candidates of the job opening through campaigns, ads, social media posting, and email marketing. Once the pool of candidates is created, outside testing is purchased to search for the right candidate. Testing ensures the personality, performance, and knowledge of the team member. However, one can lie on paper as everyone wants to look good and get selected for the job. Later, scheduling interviews and background checks involves time and effort, which are wasted if the wrong candidate is hired.
Compensation:
Once the candidate is hired, the company gives salary and bonuses to each team member. In the first month, the team member is considered“new”; therefore, most of the time is spent training the team member. A product management organization invests in its employees by providing them with stock options and benefits and making direct business expenses. So, it is better to be careful before hiring a new team member, considering all the costs a company has to bear because of the mis-hire.
Severance:
The severance fee includes salary and benefits, and the law company also uses an outplacement counseling fee, which assists redundant employees in finding new employment. This can be a significant loss for the product management organization if the team member resigns within a few months of joining the company. There are various lawsuits caused by the person, such as harassment or EEOC.
Opportunity Cost:
The job opportunity that got wasted because of a misfire could have been utilized by a genuine team member. The job opportunity could have gone into the hands of someone who better deserves it and is ready for the commitment. Apart from this, the company faces the loss of new business ideas, top grading interview guides used, and energy a great team member could have brought to the organization. There is also a loss of productivity due to preliminary work done by the team member and the hours spent correcting the person.
Wasted Hours:
Time is money. The wasted hours spent on the team member, from hiring to correcting, could have been used to increase the work productivity in the organization. The delayed work and patching things up with the client also took maximum time and energy. The re-doing, double-checking, and increased workload could have been avoided if the right person had been recruited.
What You Need To Know About Working With An Experienced Recruiter
An experienced recruiter has dealt with many hirings and people. They have people skills and understand that people aren’t often the same person they try to portray. Here are a few things that will make you admire the work of an experienced recruiter.
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Clear Communication:
An experienced recruiter won’t try to hide or indirectly talk about your job role. They will be explicit about providing you with the information you need to know. They are the people that want to hire you. They want you to land a job, and that’s the reason they try to be a little strict about the company’s policies and protocols before hiring you. So, they will communicate with you about everything.
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Place Company’s Interest First:
As a recruiter, their primary job is to help the company. They help people find a job, but this also leads to the company seeing a team member, which is the most satisfying part of their job. They will not go out of their way or give you false commitments or information to ensure your interest in the company. They will be upfront about the job profile, salary, and benefits, company s rules and regulations before you enter the company.
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Knows What Your Job Involves:
Many companies have HR that are just good with the hiring process but don’t know anything about the job the candidate will have to do. This results in most of the mis-hires. They hire people who look good on paper and are confident without knowing the job profile. An experienced recruiter will learn all about the job description and follow a top-grading interview guide to hiring the team member. They wouldn’t just hire someone who fakes well.
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Highly Decisive:
The recruiter’s job is to hire one candidate out of a hundred interviews. An experienced recruiter knows which team member is suitable for the job as they consider all the necessary factors. They don’t go for skill sets and communication of the person but try to understand the person from the inside out. They look for candidates who are ready for a long-term commitment, accept changes, and will stay loyal to the product management organization.
Takeaway
You saw the cost of a mis-hire in a company is very high. And one has to be very careful while hiring a team member as a lot of time and money is invested in a team member. However, you can avoid the hassle of hiring and rehiring by simply connecting with Palarino Partners. They are excellent at their work and have great experience recruiting employees. So you know who to contact whenever you need a product manager.
