The impact of incorrect recruitments on an organisation’s operations is far-reaching. They have a direct impact on productivity loss, working atmosphere, customer satisfaction, and time usage of the team and manager.
In Finland, the direct costs of recruitment errors range from 30% to 50% of a person’s annual salary, to which must be added the indirect costs of time spent on recruitment, salary costs of the people involved and loss in productivity. The cost of misrecruitment varies between €10 000 and €100 000 depending on the level of the job and the size of the company. We estimate that the cost of misrecruitment in Finland as a whole is in the hundreds of millions of euros, with estimates ranging from €120 to €210 million per year.
When recruiting, there is always the possibility of occasional misrecruitment. However, by being aware of the most critical steps in the recruitment process, the most crucial steps can be improved to avoid failures.
Failure in recruitment can be the result of many factors
The most common causes of misrecruitment:
Competences
The most common causes of misrecruitment are skills mismatches. From the employer’s point of view, the skills of the person hired may not fully match what was originally sought. On the other hand, the jobseeker may also experience anxiety, stress and frustration if the job does not match their own skills or expectations from the recruitment process. In this case, the risk of termination of the employment contract is higher.
Working practices and values
As in our case study, misrecruitment can also result from 1) differences in working styles and culture, 2) differences in the values of the organisation and the person, or 3) disappointments in the management approach of the selected person or his/her superior. All of these have a major impact on both the organisation and the employee, and the risk of the contract being terminated, including by the employee, increases.
Criteria for assessing personal qualities
In unsuccessful recruitments, the selection of a person is usually based on unclear or contradictory assessment criteria. A person is selected for a position purely on the basis of experience or skills, without paying any attention to personal selection.
Personality assessment criteria identify the most important personal qualities and working styles for success in the job, which the employee needs to succeed in the job and the environment. In setting criteria, it is worth considering how the required personal qualities will be reflected in the employee’s daily activities and how the criteria will be objectively measured during the process. There should be other methods of assessing personal qualities than just interviews.
Avoid misrecruitment by ensuring these three points
Clear evaluation criteria and a reasonable timeframe
The criteria therefore define the most important characteristics, skills and working styles needed to succeed in the job and its environment. In setting the personal attributes, it is worth considering how the required attributes are reflected in the employee’s daily work patterns and activities.
For example, if self-management is important for success in a role, what does this mean in practice? Are they self-motivated, do they have high prioritisation and pressure management skills, or how do they manage stress?
Criteria and personal qualities guide and support the whole recruitment process and the decision-making process at different stages. If the skills and competences that are most important for success in the job are not clear, it can be difficult to bring the recruitment process to a successful conclusion. These criteria should therefore be present throughout the recruitment process and support decision-making from the first stages of recruitment.
Time must also be allocated to the recruitment process and a plan for its progress should be clear to all parties involved before the recruitment process starts. This will ensure that recruitment is not delayed by time pressure and that decisions taken are in line with the strategy and criteria.
In summary:
- Write down as clear as possible the competency and personality criteria for the role, i.e. a description of the key attributes, objectives and expectations of the role, as well as the desired qualities of the person.
- Consider your company’s culture, values and ways of working – what kind of person would fit into your organisation?
- Carry out the recruitment according to your plan, avoiding rush and time pressure.
Psychological personal assessment
Psychological assessment is a safe and cost-effective tool to avoid the high costs and side-effects of failed recruitments. The psychological assessment is also based on clear criteria, which are defined together with the client at the beginning of the assessment process.
According to the National Recruitment Survey 2024, one of the biggest areas for development in the recruitment process of organisations is the use of aptitude assessments and psychological tests. More than 40% of HR professionals surveyed felt that their organisations were very poor or fairly poor at using them. The value and importance of suitability assessments is therefore recognised, but there is still room for improvement in their implementation.
The benefits of suitability assessments for the organisation are straightforward in the recruitment decision, but they also add value in the longer term. The results can be used in orientation and on-boarding, potential mapping and career guidance.
For candidates, taking part in an assessment can help them to identify their own motivational factors, strengths and areas for development, as well as clarify their perception of how they see themselves in their role and in the organisation.
In summary:
- A psychological personality assessment identifies issues that are difficult to identify during an interview.
- You get a clear recommendation to support your recruitment decision.
- Ensure a correct orientation process.
Psychological personal assessment
Psychological assessment is a safe and cost-effective tool to avoid the high costs and side-effects of failed recruitments. The psychological assessment is also based on clear criteria, which are defined together with the client at the beginning of the assessment process.
According to the National Recruitment Survey 2024, one of the biggest areas for development in the recruitment process of organisations is the use of aptitude assessments and psychological tests. More than 40% of HR professionals surveyed felt that their organisations were very poor or fairly poor at using them. The value and importance of suitability assessments is therefore recognised, but there is still room for improvement in their implementation.
The benefits of suitability assessments for the organisation are straightforward in the recruitment decision, but they also add value in the longer term. The results can be used in orientation and on-boarding, potential mapping and career guidance.
For candidates, taking part in an assessment can help them to identify their own motivational factors, strengths and areas for development, as well as clarify their perception of how they see themselves in their role and in the organisation.
In summary:
- A psychological personality assessment identifies issues that are difficult to identify during an interview.
- You get a clear recommendation to support your recruitment decision.
- Ensure a correct orientation process.
Carry out recruitment together with a recruitment partner
The pillars of finding the right talent are therefore planning, proactivity and expertise, and in some cases the support and involvement of a recruitment partner. A professional direct search and recruitment partner will find the right talent, provide strategic support and advice during the recruitment process and ensure successful candidate communication that supports the employer’s image.
In addition, when working with a partner, recruitments usually have a guarantee period of six to twelve months; if the employment contract has to be terminated within the guarantee period, the recruitment process will restart, free of charge for the client.
If your organisation is considering the right approach to a successful recruitment process, we are happy to help. Contact us!
Avainsanat
- direct search, misrecruitment, recruiting
Julkaistu
Ota yhteyttä
Matias Saarni
040 359 0156
matias.saarni[at]avila.fi