Why cutting down hiring costs doesn’t make it cheap

man with hiring costs headache employer problemsThe harsh reality of hiring costs– we upset ourselves without even knowing it!

Sometimes we make bad hires because we don’t have the necessary expertise or resources to
ensure robust hiring practices.

I can tell you that there is, in fact, ONE simple reason why bad hires occur.

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The reason that we make bad hires is quite simple. It is because we make a compromise. Sometimes we settle for less and don’t ensure we hire the best. (We strive to lower hiring costs, yet end up incurring more.)

We don’t make bad hires intentionally. So let’s look at reasons why it may happen:
 There’s time pressure to fill the vacant position.
 We focus on skills but forget to focus on the person’s attitude.
 We tend to ask the wrong questions instead of the right questions.
 Focusing too much on “nice to have” qualities rather than the “must haves.”
 Hiring bias, such as being seduced into hiring someone we like or someone that “looks” good
 Having the wrong people making or influencing the hiring decisions
 We may bypass or compromise on important checks, for example, reference checks and personality tests.

The solution is to not Compromise – and ensure we minimise the possible causes. We can do this by:
 Having a mindset of securing the best candidate (not the first)
 Reducing pressure to hire quickly
 Hiring for attitude first and skills second
 Focus on getting the “must haves” right before the “nice to haves”
 Ensuring we have the right people involved in the hiring process
 Making hiring a group decision, eg involve key members that will work with the candidate
 Using behavioural based interviewing techniques
 Using robust checks (eg reference checks and personality tests etc)

By doing these things you will experience a higher percentage of successful hires and a reduction in the frequency and expensive hiring costs of a bad hire. For more information on hiring right, contact Neil at 1300Hired. [/read]


How employee engagement increases Profits by 22%

Employee Engagement:
The Secret to 21% improvement in Profits

One of the most confronting facts about business performance is the correlation between the engagement of your workforce and the productivity and profitability of your business. In any workplace, there are 3 levels of employee engagement, and the level of engagement in the typical Australia workplace is quite alarming. 

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Employee Engagement Survey

Did you know that in the Average Australian workplace that:

How does Australia do in terms of employee engagement

  • 24% of workers are Engaged; motivated employees and likely to exert extra or discretionary effort.
  • 60% of workers are Disengaged; unmotivated staff and unlikely to exert extra effort.
  • 16% of workers are Actively Disengaged; truly unhappy and unproductive employees.

What this means: in the average Australian workplace, over 75% of the workforce is either disengaged or actively disengaged. This means that too few of your workers are engaged and you are not getting the most out of your employees.

World's employee engagement survey

In contrast, and according to studies by Gallup, world’s employee engagement survey best practices are markedly different, where: 

  • 67% of the workers are Engaged;
  • 26% of the workers are Disengaged;
  • 7% of the workers are Actively Disengaged.

This means that by improving employee engagement from average to world’s best practice, you will increase your productivity by 21% and increase your profitability by 22%


There are reasons that cause a Disengaged and Actively Disengaged workforce. However, there are some simple steps that you, as a business owner, can do about it.

The first step is to diagnose where your business sits in terms of employee engagement. To do this we can help you with a free no obligation “Engaged Organisation Financial Snapshot.” To access this snapshot and discover what productivity and profitability increase you can achieve in your business, simply contact Neil at 1300Hired and we will send you a one-page form.