The Hidden Costs of Wrong Hires

The Cost of Hiring Not Hiring the Right People

The Hidden Costs of Wrong Hires: Maximizing Profits Through Strategic Talent Recruitment

Hiring has a cost but not hiring the right people also has a cost and it is significantly higher.
The White Paper: “Solving Our Manpower Shortages” states: “We solve the resource
shortage by recruiting talent, developing talent, retaining talent, and putting in place
processes and practices that make us less dependent on talent.”

These four elements are essential to maximizing your profits and ensuring the long-term
stability and sustainability of your plants and production facilities. Talent recruitment, if
properly supported, provides the quickest results. A structured and managed recruitment
process will ensure that your requirements match the talents, needs and aspirations of the
potential employee, not only helping you select the right resource but also increasing your
chances of retaining the person once they are part of your team.

The White Paper provides an example plant, based on work done in multiple asset intensive
companies and industries. Referring to a sample plant of 500 employees, the authors were
able to project a recurring annual gain (reduced costs and increased revenue) of $8 to $11
million US, or $16,000 to $22,000 per employee. Of course, not all of this is achievable from
hiring alone, but hiring the right people is part of the solution and contributes to these gains.

A specialist human resources and recruitment organization is an extension of your HR team
and can help take much of the guesswork out of selecting future employees. They can also
support your HR team in establishing a practical, effective hiring strategy, one that will
contribute to your overall financial success.