The true cost of hiring the wrong person
What does it cost to hire a graduate? Their salary for a start, but then there's the cost of the actual recruitment, whether that's run in house or externally, then there's marketing expenses, the cost of on-boarding, and any background checks you have to make, and of-course the cost of lost productivity for managers who may have to spend several hours panning through CV's and conducting interviews. When you add it all together it's a lot.
It's all worth it though if you hire the right graduate, because estimates suggest that for every £1 spent on a graduate they make £5 for the business.
But what if you don't hire the right graduate? What if the graduate you hire leaves after only a year and you have to find a replacement for them? Then that's another significant round of expenditure for your business, and while we'd all like to believe that our recruitment practices are such that this can be avoided, rarely is this the case. In fact most studies find that on average graduate recruits will move on from an organisation after only 18 months, and very few have any intention to stay put for more than two years.
Some have speculated that this is part and parcel of hiring millennials; experts argue that they simply have a different approach to work compared to older generations, and while this may be true to a degree, the fact remains that millennials, just like all employees, want a job that satisfies them, pays what they feel they deserve, and where they feel respected and valued. It's not an unreasonable demand in truth, yet few graduates find this alignment in their first role, and this is why they move on, essentially because they didn't find the right fit in the first place.
Considering how much it costs to hire someone in the first place, and the extra cost of having to replace them a year or so later, it appears businesses and individuals would be better served trying to find the right match from the very beginning. Of course this is often easier said than done, but with HappyWork's scientifically validated approach, we can take care of finding the right candidates, all you need to do is choose which one you think fits your company best.