Recruitment is a significant investment, not only financially but in terms of productivity and team morale. In the competitive Scottish job market, the pressure to fill vacancies quickly may tempt employers to hire fast rather than right. However, investing in a quality candidate — even at a higher initial cost — is often a wiser choice than dealing with the ongoing costs and disruptions of replacing a poor hire. In this article, we’ll explore why it’s more effective to hire the right person at a premium than to risk the expense of rehiring when things don’t work out and the true cost of recruitment.

Examining the Full Cost of Recruitment

Recruitment expenses encompass far more than just the obvious costs of advertising and interview logistics. According to industry data, Cost Per Hire (CPH), which is the average amount spent on making a hire, can be substantial. This figure includes:

• Internal recruitment costs: Salaries for recruitment professionals, specialist software like applicant tracking systems, referral programme costs, travel expenses, and event fees for recruitment fairs or job shows.
• External recruitment costs: Recruitment agencies typically charge between 20-30% of a new hire’s starting salary. Highly specialised roles can amount to over £36,000. Additionally, temporary cover for open positions can add to external costs.

These visible costs are only part of the picture. Poor hires bring further hidden costs, which are often even more significant.

The Hidden Costs of a Poor Hire

Hiring the wrong person can become extraordinarily costly when factoring in the disruption to team dynamics, loss of productivity, and potential damage to employer reputation. For example, a poor fit in a mid-level management role can cost a business over £132,000 in lost productivity and replacement expenses. Here’s how these hidden costs accumulate:

1. The Cost of the Empty Chair The typical time to fill a vacancy in the UK is around 48 days, and for senior or niche positions, this can be longer. A vacant role means lost revenue for income-generating positions and increased workload for team members who must pick up additional tasks. This can lead to burnout, reduced morale, and eventually even more vacancies.

   The financial impact of a vacant role can be calculated by dividing annual revenue by the number of employees and using a weighting to account for the role’s seniority. For example, a developer role with a salary of £70,000 in a business generating £40 million revenue with 200 employees results in a daily impact of £865. If this role remains vacant for four weeks, it costs over £17,000.

2. Dip in Productivity and Onboarding for New Hires A new hire doesn’t become fully effective overnight. It typically takes 1-2 months for someone new to reach optimal productivity. Worse, if the new hire leaves within the first three months — as 43% do, due to poor fit or onboarding issues — the company loses the time and resources invested in getting them started. If they must be replaced, the costs of recruitment, onboarding, and lost productivity double.
3. Loss of Knowledge and Expertise When experienced employees leave, they often take invaluable knowledge with them. Losing employees with specialist skills or institutional know-how can be challenging and costly. Without robust handover processes or documentation, these knowledge gaps impede the team’s ability to work efficiently, leading to further productivity loss and stress on existing employees.

Investing in the Right Candidate: Why Quality Pays Off

Though it may seem expensive to hire a high-quality candidate, investing in the right person is a cost-effective strategy. Here’s why choosing quality over speed yields better outcomes:

1. Enhanced Retention and Lower Turnover Costs The right candidate offers both skill and cultural alignment, which is a strong predictor of retention. A premium hire who fits well with company values and goals is likely to be committed, reducing the risk of turnover and saving on the costs of rehiring.
2. Higher Productivity and Faster Adaptation A quality candidate with strong alignment to the role and culture will often ramp up more quickly than someone who’s a poor fit. This saves time for managers and team members, avoids productivity dips, and reduces the burden on other employees who may otherwise have to compensate for a less effective new hire.
3. Strengthened Employer Brand and Employee Value Proposition Investing in strong hires, supporting wellness, career development, and competitive compensation creates a solid Employee Value Proposition (EVP). This makes the organisation more attractive to high-calibre candidates, reducing hiring times and improving retention by showing that employee needs align with organisational values.

Practical Steps to Avoid Double Hiring

In Scotland’s competitive job market, it’s essential to secure candidates who fit well with the team, role, and organisation from the start. Here are key strategies to ensure success:

• Maintain a Broad Talent Pool: Engage passive candidates and build a diverse pool through talent mapping. This provides access to high-quality candidates without needing to rely on rushed, high-volume recruiting.
• Emphasise Cultural Fit: Assess candidates carefully for culture and values alignment. A well-defined process for understanding a candidate’s potential fit with the company culture significantly improves the likelihood of long-term success.
• Invest in Wellness Programmes: Supporting mental and physical health reduces burnout, absenteeism, and turnover, and it improves engagement. Wellness programmes that support flexible working, mental health resources, and healthy work practices are essential for retaining a motivated and productive workforce.

So, the true cost of recruitment…Hire Once, Pay Once

In summary, investing in the right candidate, even at a premium cost, is often more economical than facing the cycle of poor hires, low productivity, and repeated recruitment efforts. A quality hire not only fills a vacancy but contributes to a stronger team and a more resilient business. For organisations in Scotland seeking to manage recruitment costs while building a high-performing workforce, the strategy is simple: hire right, hire once.

Need help finding a new hire? Speck to one of our recruitment specialists!