Why should companies invest in new recruitment and selection solutions?
Employee turnover is very costly, yet many firms seem unable or unwilling to do what it takes to stop it. Hiring mistakes include the cost of termination, replacement, vacancy and learning curve productivity loss. Mistakes are much more costly than most managers realize! Click here for a detailed review of the high cost of hiring mistakes. The U.S. Department of Labor estimates that hiring the wrong entry-level person can cost an organization more than $5,000 within the first three months. At higher organizational levels, these costs increase. Hiring the wrong manager at $100,000 per year costs an employer about $300,000. It costs about $4900 to hire the wrong engineer. It costs about $2500 to hire the wrong computer programmer. HR Magazine reported that employee turnover and retraining cost U.S. companies about $1 billion annually. As the above statistics show, it is easy to make a strong business case for investing in new recruitment and selection solutions. How do we estimate ROI fr
