Recruitment is a critical process for any business and should be approached in a structured way for maximised chances of success. The reasons behind recruitment failures can be complex and interconnected. By identifying and mitigating these risks, companies can improve their hiring success rate and avoid costly mistakes.
The Recruitment Success Illusion – A Football Analogy
An interesting article discussing football recruitment attracted my attention recently. It argued that despite very high chances of success in individual factors evaluating the player’s fit for the transfer, the cumulative effect of those criteria can reduce the success of that recruitment to worse than a coin flip, i.e. 48% (source)! This concept applies directly to headhunting and recruitment.
In the article, Dr. Ian Graham, a physicist turned football data expert, analysed why player transfers often fail. He identified seven key risk factors that influence success:
- The current player is actually better than the new recruit.
- The new player is not as good as initially thought.
- The player does not fit the team’s style of play.
- The player is played out of position.
- The manager does not favor the player.
- The player has fitness issues.
- The player has personal issues.
Dr. Graham argued that even if each of these factors has a 90% chance of success, the cumulative probability of a successful transfer drops drastically compared to their individual success probability because the risks (remaining 10%) add up. 0.9^7 = 48%, meaning there is only a 48% chance of the transfer being a success.
The same principle applies in HR services and executive recruitment. Even when candidates seem like the perfect fit, multiple small risks can accumulate, making the overall hiring success probability lower than expected.
Even if a candidate seems like the perfect fit, the accumulation of multiple small risks can lower the overall probability of hiring success more than expected.
Key Factors for Successful Recruitment
For professional recruiters, asking the right questions early in the hiring process is crucial to minimizing the risks of making a bad hire. These may differ by industry, but here are some universal key considerations:
1. Does the Candidate Have the Right Technical Skills?
Technical skills are essential, though some can be learned on the job. Employers should assess whether the skill gap is manageable and weigh the time and cost of training. Hiring someone without key competencies may slow productivity and strain the team.
2. Does the Role Align with the Candidate’s Career Ambitions?
Ambitions should be discussed early in the hiring process. If the candidate’s long-term goals (over the next 3 to 5 years) don’t align with the role, they may leave prematurely. If an employee expects career growth but finds no opportunities for promotion, dissatisfaction follows, which is a risk both for the team’s spirit and business performance.
3. Are the Manager’s and Candidate’s Expectations Aligned?
Professional recruiters know that the relationship between a new hire and their manager is critical. If a manager’s leadership style clashes with the candidate’s expectations, engagement and performance can suffer.
4. Do the Company’s Culture and Values Match the Candidate’s?
Cultural misalignment is a leading cause of early resignations. HR services must assess not only skills but also cultural fit to reduce turnover.
5. Does the Compensation Package Meet Market and Candidate Expectations?
Offering a salary below market rates or failing to meet the candidate’s expectations can lead to dissatisfaction and early departure.
This list isn’t exhaustive, but it helps improve the hiring process. Many candidates leave because the reality of the role is nothing like the vision sold by the hiring company.
The Cost of a Bad Hire – Why Strategic Hiring Matters
While companies may not be risking CHF 100M on a football player, the financial impact of a failed recruitment is significant. At a minimum, a failed hire costs three months’ salary and social charges, but in many cases, it can go much higher.
For example, we worked with an SME with eight employees and a CHF 1.5M turnover. A poorly planned hire resulted in CHF 70,000 in costs, a major hit to their bottom line. This kind of mistake is avoidable with the right human resource solutions.
A bad hire costs the equivalent of three months’ salary and social charges, but in many cases, the cost can be significantly higher.
Strengthen Your Recruitment Strategy
Recruitment is not an exact science, but by identifying potential failure points early and integrating key questions into the hiring process, businesses can significantly increase the success rate of new hires.
Beyond technical skills and specific sectors of expertise, a recruitment agency specialised in headhunting can help evaluate the soft skills, cultural fit, and long-term potential of candidates to maximise chances for successful hiring. Temporary staff solutions can also be effective strategies for reducing hiring risks and ensuring flexibility in workforce planning.
Investing time and resources into structured recruitment practices ensures better hiring decisions and leads to more engaged, motivated, and productive teams.
About mPlusone
At mPlusOne, our expertise in human resource solutions: talent acquisition, temporary staffing, and comprehensive recruitment process outsourcing helps companies navigate the complexities of hiring. By minimizing risks, we help businesses build stronger, more resilient teams.
Contact us today for expert recruitment support!
