paul farrer at july 2013 directors event
DESCRIPTION
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.TRANSCRIPT
// More Together
Recruitment Mistakes
hundredI’ve made a few
Mr Impressive
Why people leave Aspire?
10% fail probation34% other rec co10% own biz30% out of rec10% relocate6% 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
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
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
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
Mistakes we have made……..
RECRUITING SKILL SET WE DIDN’T MASTER
EXEC SEARCH, HR, ITBuckle to pressuretime, Candidate under offer
A c c e p ti n g l o w e r s t a n d a r d sB e s t o f b a d b u n c hToo much influence from
one manager
Manager prepared to take a risk
Recent joiner
recommendation
….. more than once!
Assuming track record of success in one marketwill transfer to ours
Not taking references
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
And finally