Knowing Your Cost of Bad Hire = Demonstrating Business Value
In order to demonstrate the true value of the Talent Acquisition department, and to demonstrate how much money it can save and make for the company given the appropriate resources to do its job effectively, you better know your own company numbers and be able to break it down for the business.
Speaking in $ can get your department more $.
Getting Started
Different stakeholders dedicate their time to the hiring process - recruiters, hiring managers, team members and more.
In order to be able to assess the cost of the time dedicated, you should have the hourly rate of each stakeholder (or at least a close estimation of it).
Scaling the Numbers
In order to be able to calculate the monthly/quarterly/yearly cost of bad hires you should also have the yearly turnover rate and the current number of employees in the position.s you are doing the calculation for.
Have the Numbers?
On our next post: What actually goes inside the cost of a bad hire?
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