Everyone makes mistakes, but when it comes to hiring, those mistakes can be quite expensive.
Citing a CareerBuilder survey, J.J. Keller reported that 69% of businesses experienced a bad hire in 2012. Forty-one percent estimated the cost of that bad hire to be at least $25,000 while 24% stated that it cost them more than $50,000.
It’s more than just recruiting and training costs employers need to think about when considering what a bad hire costs their company. According to the survey, some of the biggest costs come in the form of lost productivity and the negative impact bad hires have on other employees and clients.
So why do so many companies make this costly mistake? The survey found that the biggest reason, given by 43% of the respondents, is the need to fill a position quickly. As a recruiter, you have the ability to reduce the risk of a hasty hire by offering candidates on a contract-to-direct basis. That way, your clients can get help quickly without the commitment of a direct hire who may or may not be the right fit. If the candidate doesn’t work out, the company can simply end the contract assignment.
Better yet, if your client likes the candidate and decides to hire them directly, you can earn a conversion fee on top of the hourly rate that you earn while the candidate is on contract.