What is the Cost of a Bad Hire?

Sandra Olivier - Friday, July 31, 2015

arrow Hiring the wrong person for the vacancy you want to fill can cost your company between three and five times their salary – so say internal surveys from CareerBuilder and the Society for Human Resources Management (SHRM). Irrespective of their skill level (entry-level or executive), there is no good reason for businesses to lose money on poor-performing or ill-fitting employees. We explore what a “bad hire” is, how they impact a company’s bottom line, and shed some light on the steps to take to avoid a bad hire:

What is a bad hire?
A bad hire is someone who is either the wrong culture fit for the job, team, and/or work environment they were placed in, or someone who is not delivering on their job requirements and performance expectations.

What does a bad hire cost?
Hiring the wrong person for the job has a much broader financial and cultural impact than the person’s annual salary. That impact can include:

Hiring costs
The time that HR and senior managers spent on the recruitment process – screening CVs, communicating with potential candidates, performing background checks and psychometric tests, interviewing and evaluating candidates, and inducting new employees – is wasted when they amount to a bad hire.

Direct employment costs
You wouldn’t pay for a bag of rotten apples – so paying the salary of a person who doesn’t contribute to the company’s growth is a bad investment.

Overhead costs
The employee’s office space, use of resources and utilities, travel expenses, training, and HR management costs all count as company overheads.

Supervisor/Manager costs
The time that a supervisor or manager spends training, evaluating, coaching or correcting a bad hire costs money. The senior employee’s own work time is compromised, especially when the bad hire results in disruption or affects their ability to meet their own KPIs.

Team productivity and morale costs
When a bad hire is part of a team that has deliverables to complete, the rest of the team needs to compensate for the bad hire’s poor performance. Not only does this affect the team’s productivity, but company morale can also take a nosedive and can take a mammoth effort and considerable time to correct.

Negative impact on client relationships
A poor performing employee will cast a bad light on the company as a whole in the eyes of the company’s clients, especially if deadlines are missed or poor work is performed. The company’s reputation may have taken years to build, but can be destroyed in an instant because of a bad hire – the cost of which can run into millions if lost opportunities are factored in.

Severance costs
Many bad hires will be happy to stay in their jobs and while away their time – doing the minimum to earn a salary. When this behaviour and poor performance is costing your company money and lost opportunities in the long run, it may be better to legally terminate their employment. This means paying out severance benefits – however, these may be minimal compared to the long-term damage that a bad hire can do.

Take these steps to avoid a bad hire:

  • Have very specific candidate requirements – the job description and KPAs for that role should be up to date and used to measure suitability in the screening process.

  • Get input from a range of stakeholders – allow the HR manager, the job’s team lead, and even a team member or two to be part of the screening process and get their input on the people being interviewed.

  • Evaluate candidate abilities – put shortlisted candidates through a timed skills test to evaluate their capabilities under pressure and to truly determine if they possess both the skills and attitude you require.

  • Conduct psychometric and/or personality testing – these tests are expensive, but worthwhile when it comes to identifying high-risk hires and reducing employee turnover.

  • Take time with proper on-boarding – employee orientation and training should be a vital part of a new employee’s probation period, ensuring they understand company policies, what’s expected of them, and how they’ll be measured on their performance.

  • Get help – recruitment specialists not only have the necessary database from which to source great candidates for your vacancies, but also perform the initial CV screening and have the requisite skills and experience to identify, attract, and screen the most appropriate candidates and reduce the likelihood of a bad hire.
  • Wanting to avoid the cost of a bad hire? Communicate Personnel is a specialist recruitment agency, with the very best recruiters and we want to help you. We specialise in the sourcing of top candidates in the FinanceITEngineering and Supply Chain/Freight industries, both for permanent and contracting placements throughout South Africa, and the African continent. Contact us today!

    Or if you happen to be in the market for new FinanceITEngineeringSupply Chain or Freight jobs, visit our vacancy page and apply now.


Is Java still the programming language to use?

Mallisa Watson - Tuesday, July 28, 2015

javaReadability is a particularly valuable trait for a programming language, especially one used for writing new software. With complex software, programmers must be able to understand code that may have been written months, or even years earlier.

And that is exactly why Java has remained on the development workbench when many other widely used languages of the 1990s, such as Delphi or Perl, have been pushed to the side or used only for a select set of duties.

Java's success in remaining relevant on the ever-changing landscape of software development has been its relative simplicity. It is pretty easy to read Java code and figure out what it means. There aren't a lot of obscure gotchas in the language. Even Google chose to use Java as the programming language for its massively popular Android mobile operating system and it has led to a renewed interest in the language from a whole new communities of software developers.

In this age of rush, there is an obvious trend to produce code that is highly productive while lessening the headache of maintenance. Java seems to deliver just that.

Java developers are in great demand
People with Java-related skills are a hot commodity in the job market. With employment a vital concern to everyone, the abundance of Java jobs will keep the language and platform in trend.

The ITWeb Salary Survey 2015 highlighted that when it comes to those who have software development as their primary expertise, Java developers (amongst others) tops the best-paid list, all averaging over R580 000 a year.

A growing community
There is a huge community to help the programmer in need in most critical situations. Blogs, articles, code snippets, you name it. You know that help wizard that pops up in Windows, eager to provide hints and suggestions? The Java community has built many such wizards. Essentially, programmers are always looking for ideas and problems that inspire them and are eager to help, offer suggestions to one another through numerous blogs and forums.

Java is rich in Application Programming Interface (API) documentation, concept articles, tutorials, sample codes. Apart from that, there are several books available covering almost every corner of Java. Many of them are freely downloadable. Though not an ideal way of learning, I suppose if every documentation, tutorial, article is followed one do not even need a hard copy of materials to learn Java.

Write once, run anywhere
Perhaps the most exciting quality of Java is its platform independence, write once and run anywhere. The Java compiler does not create an executable file, but rather it produces a half compiled code, called bytecode. This half compiled code is given to the Java Virtual Machine (JVM) installed in a specific platform (also known as the operating system). JVM is a layer above the operating system that understands bytecode and processes that code further in order to run the application.

Portability, speed and security
These three are the most essential pillars to support modern programming languages. Many of its predecessors failed in this aspect. For example C++ programs are very efficient with respect to speed, and portability but doesn’t have resilient security. Many of its gaps can be easily exploited and tweaked to inject insecure code. Java runs through several layers and does not have a direct access to the underlying operating system. This however compromises speed but ensures reliability. So a happy balance among the three is often more desirable than one exceptional feature.

Java, while a successful platform for more than 19 years, certainly faces challenges. What follows are just a few of the development issues and what they mean for Java.

Performance is a concern of applications written in any language. Most programmers are familiar with common performance issues using a conventional language such as C# with a stand-alone or even a server application.

In addition, Java applications do struggle with problems surrounding the collaborations between modules running on different systems. Performance problems may clear themselves in unexpected ways or appear to be caused by different parts of the code other than the actual problem area. Identifying the performance holdups rapidly is a significant challenge in distributed application development.

Enterprise Java applications, especially distributed ones, are often mission-critical in nature: all parts of the application must work perfectly at all times. Developers and development managers must be able to measure the reliability of their applications accurately. While the characteristics of the language tend to make Java applications less error-prone, there are still plenty of ways to introduce runtime errors.

Java makes it possible to write highly threaded applications that make sense in a distributed environment. But using threads means that problems with resource disagreement and deadlock are much greater.

Java applications face the same testing problems as traditional ones. They must be tested as thoroughly as possible before saved, and developers should have a good idea of the extent of the test coverage before certifying an application. Distributed software systems written in Java, however, are extraordinarily difficult to test and debug. Because components reside on different computers and must work together perfectly for the application to work properly, all components must be tested simultaneously.

Every single developer has his or her own preferences when it comes to using a language for a particular project, which language do you as a developer prefer?

Are you looking for the next big break in your IT career? We are a specialist IT recruitment company that can help you find your next job opportunity. We have a variety of IT vacancies ranging from Java Developers, Business Analysts, SQL DBA, Business Systems Manager & more. Visit our website and apply today!

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Why Recruitment is a good career choice

Mallisa Watson - Friday, July 24, 2015

road-signYour career is one of the most important things in your life. So if you get granted the opportunity to positively impact people’s lives, it can be extremely fulfilling. And that is exactly what recruitment does, it allows you to turn people’s lives around, for good.The recruitment industry can be very challenging and it’s not always a career that everyone will become successful in. However, if you master the art of brokering deals, then this industry is meant for you.

Have you ever considered a career in recruitment? Maybe the below will make you
change your mind.

It’s financially rewarding
Recruitment can be financially rewarding if done properly. If you follow the right methods then you will make placements that results in good commission. Most consultants would agree that this is one of the best incentives to achieve. We are in times of economic distress, so turning to a career in recruitment may be one of the best decisions you can ever make.

You get educated in business
Over the past years, I have learned so much about different sectors, company cultures, work environments, different organizational structures and different recruitment practices.

We go from dealing with construction one minute, a finance company the next hour and more later in the day. What career provides you with such variety and in-depth insight into the business world? The answer is definitely recruitment.

An opportunity to meet some interesting and rare people
You will work with a number of people. And recruitment will advance your network. You will get the opportunity to meet people from different backgrounds and cultures.

Interviewing people is a real window into some amazing lives and when you hear the stories of how companies have grown and prospered and how people have carved out a career and grown you truly appreciate that nothing’s impossible.

Communicative, target-driven and competitive
Recruitment needs you to network with different people every single day. The depth of interaction has developed over the years. With social media and mobile on the rise, the depth of communication with people is almost endless. What is more, as a recruiter you are helping people to discover a brighter future and a more fulfilling occupation.

Like any sales oriented role hitting and exceeding your targets is the key to a successful career in recruitment. You have to find ways to get there. You need to keep in mind that the process and framework should be your foundation. There is a remarkable amount of flexibility that can work to keep recruitment one of the most interesting and exciting jobs around. The beauty of recruitment is that it adapts to the times.

You develop your negotiating skills
This has to be one of the most exciting things you can learn and strengthen in recruitment. Sharpening your negotiating skills.  Becoming a better negotiator as an individual is a life skill that cannot be measured. Good negotiating skills will benefit you regardless of the industry you want to go into to.  

There are many other industries where you can make it big but nothing beats the recruitment industry for an opportunity to fast track your career, earn what you are really worth and build up a network. Why would you make any other choice?

Recruiting is such an exhilarating and impactful job, but there are obviously also some hurdles you have to cross. The strongest drawback is that when you are not closing that deals or making that sale, you will always be under pressure. The human element can be unpredictable so even though you’ve worked hard to get you candidate that job offer that they wanted, they can still turn around at the last minute and decline the offer.

Recruitment has given many of our consultants a career, help them develop new skills and an education in business. If you feel recruitment is the right job for you, check out our website today. We are always on the lookout for competitive, self-motivated team leaders and recruitment consultants to grow with our company.

If you happen to be in the market for Finance jobs, IT jobs, Engineering jobs, Freight jobs or Supply Chain jobs, then get in touch with one of our specialist recruitment consultants to get your career search off the ground.  

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Research reveals financial services require more female millennials for growth

Sandra Olivier - Tuesday, July 21, 2015

executive women According to a recent report by PwC female millennials are set to play an important part in the future growth of financial services globally. Female millennials are entering the workplace in larger numbers than ever before and come with their own set of expectations and ambitions for their careers. This means that employers should really take a closer look at their talent management practices especially in terms of this generation. Females’ views about diversity and inclusiveness in the work place seem to have reached a tipping point. No longer are they seen as ‘soft’ issues, but rather as crucial competitive capabilities.

There are several benefits to having women in your financial organization. Women bring a different perspective to issues and because diversity makes companies more representative of the world around them, it has profound implications for relationships with stakeholders. In addition, the research shows that there is a clear link between the level of female board representation and market performance. This is most marked where women have a strong presence across all levels of leadership.

Other key findings include:

Career development
A perceived lack of career progression is causing many women to leave their jobs in financial services or putting them off joining the sector in the first place. The report found that only 35% feel they can rise to senior levels within their current organisation. In order to tap into the female talent it is clear that financial services employers need to change tact in terms of their career development and the progression opportunities they offer in order to become an employer of choice for these skilled females.

Remuneration and flexibility is key
Women have yet to close the wage gap, even when they have similar jobs to their male counterparts. Only a handful of new jobs offer comparable pay and flexible working, despite technology advances and significant changes in how and where people work. 30% of female millennials in financial services mentions flexible working arrangements as an attraction and almost all see work-life balance as important.

International exposure
As companies grow they spread across the globe, highlighting the importance to seamlessly operate across borders. Female millennials understands the importance to adapt to this trend and the study shows that more than two-thirds, (68%) would like to work outside their home country and 55% believe they need to gain international experience to further their career.

It is clear that female millennials have high expectations of their future financial services employers, they are ambitious and looking for career progression. If you want to attract this generation of skilled females to help your company grow, the need for well-thought out talent management strategies is essential.

It doesn’t matter if you are male or female, if you are looking for a new job in the finance industry we can assist. Communicate Personnel is a specialist Finance recruitment agency with consultants that have years of experience working with some of the gaints in the industry. We have a variety of jobs including positions for Financial Managers, Cost Accountants, Auditors, Management Accountants and more. Let us introduce you to your future employer. Check out our vacancy page and apply today.

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Managers: Would you let your team work from home?

Sandra Olivier - Friday, July 17, 2015

technologyIn January 2014, some light was shed on the culture of flexible working hours especially for employees based in companies in Sandton, Johannesburg. Big corporates like Discovery Health and Nedbank, as well as law firm Norton Rose Fulbright, have adopted flexible working hours – also commonly referred to as “flexitime” – for their staff for a variety of reasons. We look at flexitime and working from home and ask: would you let your team out of your sight?

Why would you introduce the option to work from home?
There are a number of reasons why businesses have implemented or are considering implementing flexitime or working from home for their employees. These include:

  • to reduce time spent in traffic (and thereby also relieving traffic congestion)
  • to promote the idea of work-life balance, to allow parents to better cater to their family life
  • to reduce overhead costs (such as office space, workstations, electricity and other office resources)
  • to reduce staff turnover (according to a Regus report, 76% of respondents claimed that flexible working hours improved employee retention).

The upside to allowing staff to work off site
For South African companies trying to keep their bottom lines above water, reducing costs is a key objective. While it’s tough enough trying to extract more investment from clients, reducing office costs can come as a welcome relief to the balance sheet. From a business perspective, allowing your staff to work from home, even at least for some of the week, can significantly reduce office overheads. Not only will you require less office space (which is priced per square metre), but there will be less electricity used on extra workstations, laptop points, boiling kettles, air-conditioners and other peripherals. That’s not to say that managers will never see their team, but that they can arrange with staff to implement “hot desking” – where multiple employees use one workstation or work area at different times of the week, thereby making optimal use of fewer resources.

At Nedbank, the introduction of flexi-hours has shown an increase in staff productivity (which is closely linked to employee happiness), and Discovery Health’s policy of only allowing flexible working hours for high-performing staff means that employees see this as a reward that they are prepared to work hard for. Therefore, contrary to popular assumption, flexibility means that staff are more driven to higher productivity and don’t take advantage of flexi-time for their own leisure.

When it comes to staff working from home, many South African managers feel uncomfortable about not being able to keep an eye on “absent” employees. However, time-capture systems and various other digital check-in methods, as well as arrangements like weekly meetings in the office, can give managers the peace of mind that their staff members are indeed being productive. The usual adherence to KPI requirements will still apply.

Potential problems with flexitime and off-site work
There are still many environments, especially in banking, customer service, and support industries that do not lend themselves to the culture of flexitime and working from home. However, for businesses in work environments that can cater to off-site work, managers should still be cognisant of the fact that the success of allowing flexitime and working from home is still based on each individual given that privilege.

Some staff members are focused and organised enough to set daily, weekly and monthly tasks for themselves and to complete them in due time, whether they are being monitored or not. This works well in a production environment where workflow is controlled by deadlines and managed by individuals responsible enough to complete their tasks in the allotted time; and where work is distributed via a server or other virtual location. It is this kind of digital collaboration that is driving the justification for off-site productivity.

While working from home and flexitime cannot be applied across the board, in working environments that allow for flexible staff arrangements, it can prove to be a highly economical and successful method of work. Good employees want to work for companies that embrace technology as a means of being more efficient, and most will be more productive for the benefit of more permeable work parameters.

As a manager, will you encourage the independence and productivity of your staff? Have you tried before? What were the outcomes?

Communicate Personnel want to assist you in finding a company that is just as forward thinking. So, make that move and browse through our available vacancies, which include Finance jobs, IT jobs, Engineering jobs, Supply Chain jobs and Freight jobs .




Previous posts

  1. What is the Cost of a Bad Hire? Sandra Olivier 13 hours 17 mins ago
  2. Is Java still the programming language to use? Mallisa Watson 28-Jul-2015
  3. Why Recruitment is a good career choice Mallisa Watson 24-Jul-2015
  4. Research reveals financial services require more female millennials for growth Sandra Olivier 21-Jul-2015
  5. Managers: Would you let your team work from home? Sandra Olivier 17-Jul-2015
  6. Do You Work For A Great Company? Mallisa Watson 14-Jul-2015
  7. Roadmap to success at a new job Sandra Olivier 10-Jul-2015
  8. What does the future hold for the Procurement and Supply Chain industries? Mallisa Watson 07-Jul-2015
  9. Managing Your Talent In The Workplace Mallisa Watson 03-Jul-2015
  10. Cape Town a construction hub Sandra Olivier 30-Jun-2015
  11. How millennials should approach job interviews Sandra Olivier 26-Jun-2015
  12. Advantages of Insourcing vs Outsourcing Mallisa Watson 23-Jun-2015
  13. BEE offers both challenges and opportunities Sandra Olivier 19-Jun-2015
  14. 2015 ITWeb/CareerWeb Salary Survey Results Sandra Olivier 18-Jun-2015
  15. How To Dress Up Your CV For Success Mallisa Watson 12-Jun-2015
  16. Recruitment as a Career Mallisa Watson 09-Jun-2015
  17. What does dress for success mean in a new Millennium? Sandra Olivier 05-Jun-2015
  18. How To Brand Yourself As A Financial Analyst Mallisa Watson 02-Jun-2015
  19. How to get back into the South African workforce Sandra Olivier 29-May-2015
  20. Connecting Africa’s Largest Inland Port Mallisa Watson 26-May-2015
  21. Soft Skills: The Key to Landing your next job Sandra Olivier 22-May-2015
  22. Mall of Africa: South Africa’s largest single-phase shopping mall development Sandra Olivier 20-May-2015
  23. How recruitment agencies service the contracting industry Sandra Olivier 15-May-2015
  24. Skills Developers Should Invest In Mallisa Watson 12-May-2015
  25. Mistakes Your Are Probably Making On LinkedIn Mallisa Watson 08-May-2015
  26. Changes to Audit Standards, improving shareholders confidence Sandra Olivier 29-Apr-2015
  27. What To Look For In Your Next Hire Mallisa Watson 24-Apr-2015
  28. Saldanha port expansion into oil and gas on the cards Sandra Olivier 21-Apr-2015
  29. How to bounce back from retrenchment Sandra Olivier 17-Apr-2015
  30. Salaries, do you really understand what you earn? Sandra Olivier 14-Apr-2015