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How much does a failed recruitment cost and how to avoid it?

Let's say it right off the bat: a failed recruitment is expensive, even very expensive.

The overall loss from this type of event is estimated to be between €20k and €200k.

One way to lower this risk is to work on employer brand and candidate experience. For this, Inbound Recruiting is probably the best lever. We explain why.

The relative indifference to the real cost of failed hires

Many business leaders are terrified of missing a major sale, far more than missing a hire.

However, if a sales failure has a direct impact on the turnover, it is a loss of earnings (except for prospecting costs) while a hiring failure is paid in cash. 

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On average, 46% of new hires are not successful after 18 months. Depending on the position, replacing an employee costs between 20% and 400% of their annual salary!

These (rather scary, let's say) numbers are presented in this infographic offered by Exclusive HR and Digital Recruiters. Among other things, we learn that only one in two companies find their recruiting process effective

The cost of a failed recruitment is very high!


In these conditions, companies have every interest in minimizing this risk of failure.

How? Through (among other things) a well-thought-out strategy that relies on content and trust: the Inbound Recruiting.

Inform to better engage

One of the keys to decreasing the risk of recruitment failure is to provide as much information upfront to prospective candidates as possible, via your career site.

With a good definition of personas, it will be possible for you to determine whether or not certain specifics of your company match their expectations. 

For example, if your organization doesn't allow for telecommuting, make that clear - and say why, so as not to generate frustration. 

Investing in content is the best way to strengthen your employer brand and  therefore has a direct impact on the risk of failed hires.

A strong corporate brand can reduce the cost of hiring by 50% and reduce turnover by 28%  (source: Eda Gultekin, 2011).

The work of Inbound Recruiting therefore acts on all aspects of the cost of acquiring your talent while increasing the quality of your recruitments.

83% of recruiters say employer branding has an impact on the quality of recruited profiles. (source Linkedin)

With a proactive strategy of promoting your employer brand, you have a powerful lever to reduce the risk of failed recruitment.

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Employee advocacy as a transparency tool

Beyond your ability to properly inform potential candidates, making your employees ambassadors of your employer brand has many benefits.

Candidates especially appreciate being able to interact with "real" employees, who can give them authentic and transparent answers.

With tools like the Pathmotion platform, you can leverage employee engagement and provide your candidates with the right information to significantly improve their experience with your company and employer brand.

Make your employees your employer brand ambassadors

Employer brand ambassador programs are a "natural" extension of Inbound Recruiting approaches.

Implementing a holistic approach to the candidate experience with these two tools offers a sure guarantee to significantly decrease the occurrences of failed recruitment.

What initiatives are you putting in place to prevent your recruitment failures? Tell us in the comments!


Topics: Inbound Recruiting, Infographie, Recrutement digital, Conseils, ROI