ProSource Newsletter No 9 - January/February 2006
The Employment Process in Perspective
'People are your Greatest Asset'
Before embarking on a recruitment program of any size, it is worthwhile examining the process from a commercial viewpoint.
Consider the decision-making, planning and expenditure control that go into the purchase of capital equipment, motor vehicles, or telecoms services for your company. Even a modest financial outlay would normally involve an amount of paperwork, reviews, justifications, approvals and commitment.
If we now view the hiring of just one person, in capital expenditure terms, we can gain an insight to the importance of applying effective techniques and methods to ensure success.
At current rates of pay and with the addition of on-costs for accident insurance, annual leave, superannuation, sick leave and other costs, an entry-level employee may represent an on-going financial cost to your company comparable to the funds committed to significant capital expenditure. This expense grows rapidly with each new person appointed and is even more pronounced at senior management levels.
Added to this expenditure is the need to induct and train the new employee. Unlike equipment that can be simply turned on to perform at predetermined levels, new employees require orientation, familiarisation and training. This is a cost, which includes the time and the involvement of other people in your company as well as any materials, or other resources you may make available.
If this process needs to be repeated frequently because your new employees are not working out, your costs in terms of time, lost productivity, training, and ongoing recruitment may escalate to unacceptable levels. Unless you can correct the situation, there is no guarantee that the next person appointed will be any more successful than the last!
So, it makes good business sense to manage the recruitment and selection process to ensure the best chance of success!
Regardless of the mystique that many people like to attach to the subject, we believe successful recruitment and selection is not an art form but the application of proven techniques and methods.
Recruitment should be viewed as an essential investment.
- A ProSource Thought -
'Anybody can get a position that they can grow out of. I help people attain positions they can grow into'
Richie Harris
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