A research study conducted by Right Management reported that the cost of a bad hire range from 1 (for lower paid individuals) to 5 times the person’s salary.
Outsourcing the hiring function can not only save your organization money, but also make you money in the long run. Let’s consider this example of the costs associated with a bad hire:
Here is a conservative example of the costs incurred by a typical client for having made a bad hire:
- Number of ads placed – 4
- Price of each ad — $150
- HR hours – 27
- Annual HR salary — $75,000
- Number of candidates interviewed -5
- Number of interviewers – 4
- Average salary of interviewers – $150,000
- Productivity losses/position’s salary – $125,000
- Relocation costs – $20,000
- Number of months training – 4
Total Cost of this bad hire: $190,000
Try your own company’s example:
Utitilize this link to the “Bad Hire Calculator” provided by HR World
Now that we’ve established some of the advantages for out-sourcing your specialized positions, let us look at the reasons for turning to Ken Malek Associates to help you increase your profitability and save you money.
Not only is Ken Malek Associates one of the leading Executive Search firm that is dedicated to serving the Direct Response Marketing and Ecommerce industries, it is virtually the only firm of its kind to have successfully survived the recession.
10 years ago, there were as many as 15 Search firms that specialized in Direct Response Marketing & Ecommerce. What separated Ken Malek Associates from these other search organizations is, first and foremost, our passion for and fluency in the direct marketing industry, with over 50 years of collective corporate and executive experience.
When it comes to specialized recruiting, we are always ahead of the curve in Direct Response. We don’t need time to ramp up; we are already imbedded in your marketplace. You can expect us to be well-versed on the market conditions for the position, the job requirements and hiring issues.
As we have already demonstrated, the cost of a bad hire can be considerable. It can not only cost your firm time and money, but also its competitive edge in the marketplace.
And finally, tackling an executive search on your own can distract your senior staff from managing and growing the business while they search for the right candidates.
Ken Malek and Joe Dascola look forward to assisting your company with its executive search needs and discussing your business and your staffing requirements.