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With years of experience in finding the right people for the job, working both in internal recruitment and for recruitment agencies, I’ve learned a lot about what it takes to hire well. Hiring is a big deal – it’s not just about filling a spot on your team; it’s about finding someone who truly fits well and will help your business grow. I’ve seen how tough it can be for businesses, big and small, to find that right fit in a competitive market. And I know too well the high cost of getting it wrong.


It’s not just the obvious cost of hiring a bad hire (salary, benefits and the cost of recruitment). In an article from Human Resources Director (HRD) NZ, the cost is outlined as follows:


  • Time wasted in hiring new employee
  • Team morale + productivity decrease
  • Time taken to onboard, train and gain value out of new employee
  • Time taken to manage the employee out of the business


Time wasted in hiring a new employee

The time it takes to hire a new employee is unfortunately only getting longer. We are currently seeing record numbers of applications to job adverts; which sounds great – but is it really?


More applicants results in more time spent by internal talent teams or HR sifting through literally hundreds of applications for roles. It therefore takes longer to identify a preferred short-list of candidates, surfacing the risk of losing those preferred candidates, as they secure other opportunities through faster, more agile recruiters.


If the responsibility of screening applicants falls to the hiring managers, the screening process can take even longer. Taking them away from their day job to assess job applicants leads to a drop in productivity, increased stress, and even longer to get to shortlist stage.


End result: active candidates move further through competitors’ recruitment processes and may have already secured an alternative role by the time they are shortlisted. This could result in no hire being made due to a lack of quality candidates shortlisted and interviewed. The process starts again, resulting in more time that the vacancy remains unfilled, increased frustration and decreased productivity.


By relying solely on active job seekers applying to adverts, businesses are also missing out on accessing untapped passive talent pools of potential candidates – who, if targeted correctly, may be better suited than any ad response.



Team morale and productivity decrease

The longer a vacancy remains unfilled, the more work allocated to other team members – which is not only bad for morale but could lead to burn out or frustrations resulting in more turnover within the team.


End result:  Missed deadlines and lost revenue due to decreased employee morale and increased staff turnover rates.



Time taken to onboard, train and gain value out of new employee

According to many online sources it takes roughly 90 days to start seeing the value of a new employee, which is broken down below:


1st month settling in and learning their new business,


2nd month performing tasks and learning from mistakes,


3rd month giving value back to the team and business


Each stage of this first 90 day period requires extensive time and input from other team members and management. If an employer invests in a new employee through the process above, only to find that they are either not performing or not the right fit for the team – productivity and morale across the team will drop further and costs increase.


End Result: Loss of time and money spent on the onboarding process, team morale and productivity decrease further.



Managing the employee out of the business


The longer this process takes, the more negative impact this will have on the team and the business as a whole.


End result:  If a team manager tolerates a team member who is not performing – the more likely the high performing team members are to look for a new opportunity themselves and the reputation of the leader is severely compromised.



The consequences of a bad hire go much deeper than just financial setbacks. It’s a situation that affects everything from productivity and team morale to turnover, not to mention the broader implications for your employment brand and reputation. This supports the vital need for a strategic approach to recruitment. In our search for talent, compromising quality for speed is a pothole we must avoid.


In the evolving landscape of talent acquisition, limiting your search to just active job seekers could mean missing out on top-tier candidates. Many highly qualified professionals aren’t actively scanning job listings, but the right offer, presented in the right way, can generate their interest. That’s where the value of partnering with a reputable recruiter comes into play. A good recruiter has the skills to delve into passive talent pools, reaching out to and engaging the best talent available. This approach not only enhances the quality of your candidate shortlist but also ensures your brand and value proposition is communicated professionally and consistently.


At Lexel Resourcing, we provide bespoke solutions tailored to meet the unique needs of each client, aimed at attracting and securing the best talent out there. Our approach encompasses innovative sourcing tools, sophisticated assessment methods, and strategic onboarding practices, all designed to refine and optimise the hiring process. Reach out to our team, and let’s discuss how we can help strengthen and solidify your workforce for the future.


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Andy Talbutt


Andy Talbutt
With more than 20 years in the talent and people business; Andy has held a mixture for recruitment and HR roles; locally and internationally, mainly within IT and corporate organisations.