Why is it important to make unsuccessful recruitments visible in your accounts?

You may want to hide your mistakes and pack failed recruitments away in the accounts, but you should do the opposite.

We have previously advocated for this issue. Analyzes show that small and medium-sized companies often make mistakes when hiring new employees.

At the same time, the analyzes show that companies do not use external help to a particularly large extent.

It is not only in small and medium-sized companies that wrongful employment occurs but also in large and international companies, which are so often described in the media.

This brings to mind whether in the internal operating accounts you should change your procedures and post internal time and external costs to an account for recruitment expenses.

When wrong hiring happens, it costs dearly.

It can easily take one or two quarters before the company realizes that a given new employee was a mistake. In addition, pay during the notice period, severance pay, etc. But there are also other expenses and you should ask yourself: What has it cost?

The direct costs can be seen in salary accounts, car operation accounts, course accounts, etc. There are many hidden costs such as internal training, training of sidekicks, group training, etc. that you do not immediately place a value on.

Visibility brings opportunities

By making the cost of unsuccessful recruitments visible, the company gets to put a value on the expense.

Once the expense is visible, you can start discussing whether it is a good idea to use specialists for recruitment. You can also visualize the amount that can then form the basis of a budget for recruitment/headhunting in the coming year.

By using headhunters, you increase the probability that a given employment will end successfully.

In most companies, the saved expenses for wrong recruitment will be able to more than cover the actual fees for the headhunter.

There is therefore good reason for failed recruitments not to be packed away in the accounts, but for the company to book the costs of hiring employees and include wrongful hires separately in the internal accounts instead.

It is not an external matter but solely for internal resource allocation.

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