S2 E8 Talent Acquisition - How to hire 5* employees to grow your business with Mike McCormack

Join me in talking to Mike McCormack of People Right about the difference between hiring and recruiting, how much the wrong hire can cost you, and how to land those 5* employees.  You can also watch the full video of this episode on Youtube and Vimeo. Reach Mike at [email protected] and check out his website People Right ____________________________________ Partial Transcript: It's very interesting when you start talking about the cost associated with a bad hire, and the estimates are really all over the map. Dave, I would tend to agree with what you just said. It's higher than most people think. But even if you take the bare minimum, and the Society for Human Resource Management ah, sharp, if you will, says that the cost of a bad hire typically is six to nine times what their monthly salary would be. So if you're paying somebody $5,000 a month and they end up not working out, and they leave, or you ask them to leave, it can cost you up to $45,000 for making that mistake. Now, if you take a really bare bones approach to hiring and you say, yeah, but it really doesn't cost me that much because if they didn't perform, I didn't pay them, they were on commission, whatever. If you really try to strip it all away, even the bare bones cost in terms of the time spent, the posting, the ad, the advertising of the job, etc. Or most studies I've seen, say that that's at least a $5,000. And that's a hard cost. That's something you can measure money you have spent to make a higher. Even at the bare minimum, it's $5,000. But the reality is, I'd say the six to nine months probably applies to entry level jobs, to lower end management jobs. I'd say the number you quoted is probably more for mid level to senior level roles. I saw an article last week, and I think you shared it with me. Steven Jobs said jobs. Jobs. I'm still not sure how you pronounce his name years later, but he said that, a player can produce 50 to 100 times more than an average or poor player. So it's really phenomenal what the difference can be depending on what level you're bringing a person in and what they're going to be responsible for. I think it's very safe for a mid level to upper level, higher in any company, any industry, to say that it's going to cost you ultimately two to three times their salary if you make a mistake, and have to start over. So you can look at studies all over the map, and you can say, yeah, it's really not that much. It could be astronomical. It's somewhere in the middle of those two, but it's a big number. Fascinating, actually. Really fascinating in this whole aspect I've got a new client, actually, who's, come on board and successful business, but there's challenges within the personnel, for example. And, one of the senior people basically is phenomenal in terms of operationally, but is horrific in terms of dealing with staff and is, destroying the culture that's been built up within the organization to the point that people want to leave because of this one individual. Right. So how could something like the tool you've actually gotten I'm hoping you'll leave some details at the end where people can get in touch with you if they're interested. But how can a tool like the one you actually utilize and we'll use senior level people here, because, I'll just focus on that for the time being. But how can a tool like that screen, out possibly some of the deficiencies? Is it even possible? As ever, contact me on [email protected]