A Hidden Cost!

Recruitment within businesses can sometimes entail a hidden cost that business owners do not take into account such as the additional burden for the team to develop the new member in the role and systems of the business and is why the following survey information did not surprise us.

Around one in five employees (22 per cent) have left a job during or at the end of their probationary period, a survey seen exclusively by People Management has found.

The role ‘not being as expected’ was the most common reason given for quitting, cited by 43 per cent of respondents. This was followed by having found a better role (23 per cent), not liking the company’s culture (13 per cent) and not liking the boss (8 per cent).

Matthew from Consensus HR comments “Many business owners do not realise the overall cost of recruitment and the fact that they are paying for a considerable time for a new employee not just in the initial costs such as advertising & interviewing but also when the new member joins and the time being spent with them by their team. Business owners need to ensure that they invest in a new starter correctly so as to ensure they are motivated and happy in their new role / company.”

Recent recruitment figures obtained from the Cipd shows that on average businesses spend £5,433 on logistical costs, with the following factors contributing: Hiring temporary workers before the replacement HR Support, HR Advice, Legal, Employment Lawstarts: £3,618. Management time spent interviewing candidates: £767. Recruitment agency fees.

Matthew also comments “In the past we developed a comprehensive 3 monthly induction / performance review process for new employees to ensure they are developed adequately in their new role and given the opportunity on a regular basis initially to discuss their performance & identify any areas that need to be addressed during their probationary period. We have found this to be very beneficial to the businesses and a reduction in turnover and also assisted one of our clients in a racial & discrimination case where awards are unlimited and ability for an employee to bring a claim from day one of employment prevented / managed. This also makes them feel valued & not just a number as their induction is written specifically for them but is also down to them to tell the employer in a constructive recordable manner what support / development they require to be successful in the role.”

The study, by CV-Library, also revealed that 12 per cent of people had been dismissed during a probation period, although almost half (44 per cent) of them agreed it was the right decision.

When asked why they were dismissed, the top reasons were poor performance (27 per cent), the company being unable to keep them on (22 per cent) or being the wrong fit for the company’s culture (20 per cent).

Lee Biggins, founder and managing director of CV-Library, said HR teams should take responsibility for running on-boarding processes and making sure new starters settle in well. “Induction sessions are the perfect opportunity to take new starters through what makes the company unique and a great place to work,” he added.

The vast majority (86 per cent) of respondents to the CV-Library survey believed probation periods are a good idea, with 49 per cent saying they allow companies to ‘test the waters’ with the new employee, though the concept of a probation period has no legal basis. Just over half (56 per cent) thought that both employers and employees benefit equally from probationary periods.

As for those who do not believe probation periods are a good idea, a little under half (49 per cent) believe the time period is not long enough to monitor an employee’s contribution to the business and 39 per cent said it can be upsetting to an employee if they fail to pass their probation.

Our Recruitment page discusses how we can help businesses and can be reached by clicking here.

For further information and to discuss your recruitment or how you currently carry out productive inductions please contact us using our contact form or alternatively by telephone on 01462 621243

 

Consensus HR – “Helping Companies with their People Solutions”