Recruitment is one of the most positive aspects of corporate life: a meeting, challenges and a contract that is binding. The “permanent contract” (CDI) is not trivial, since it has a beginning but “by definition, it does not provide for the date on which it will end… It is the normal form of the contract of work, passed between an employer and an employee, without limitation of duration”, reminds INSEE. But before moving on to the operational phase, we must compare the famous “talents”.
Who says study says work/Who says work tells you the money…/So we dance, recalls Stromae as mediator between the parties. According to the Recruitment School and factorial.fr, the average cost of recruitment in France varies from 5,000 to 8,000 euros. “There are measurable costs and hidden costs that cannot be measured,” explains Nicolas Lepercq, doctor in management and R&D manager at Ignition Program (HR agency).
“Recruiting takes time,” continues the expert. And money. You must of course dedicate a person or hours to writing the job description, thinking about the missions, salary, benefits, integration path, etc. Cost it. In analytical budgeting, it also means writing the advert, sorting the CVs, increasing the number of meetings, undergoing the famous “no show” when the applicant does not come: relaunching “the one removed from the short list” or starting all over again from scratch . When you hold it, you hope for a return on your investment. The amount advanced is compensated and multiplied. Exponential? Bank.
Maintaining this productivist pearl is another challenge because the average seniority in the same company over the last ten years has gone from 6 to 3 years (Insee, 2022) – 7 years for Mbappé at PSG. A headhunter increases the bill from 18% to 30% of the annual salary of the candidate sought (tomorrowjobs.fr): time for reflection and meetings for HR, managers and the director must be added. If the profile exists internally, go for it, because even with training, the savings are notable: a loyal employee, valued and therefore committed and operational.
Nicolas Lepercq also notes three hidden costs: certain employer brands must pay 10% more to a candidate for the same job. Thus, in the funeral industry, store managers are in less of a hurry than elsewhere. The second hidden cost is the lack of commitment of an employee which can increase up to 20% of their salary, by dragging down the team, by slow work or if it generates conflicts. A phenomenon to take into consideration: 66% of start-ups and scale-ups struggle to engage their employees (Ignition Program). “There is no such thing as corporate performance that is not collective. The new recruit must interact with his colleagues and have the ability to achieve a deliverable objective,” assures the expert. This is the last forgotten cost which can amount to up to an additional 20% of a salary. To act is to plan: free simulators exist.
“Improving your performance means first of all not degrading it and the disengagement linked to poor quality of work already reduces the performance of our companies: in 2011, it represented 12% of French GDP or 250 billion euros (13,500 euros/employee/year)”, calculates Mozart Consulting.
The casting error
For factorial.fr, “the cost of failed recruitment is estimated between 20,000 and 200,000 euros”. On the failure rate of the hiring process (TEPE), the overall average cost of recruitment would represent the equivalent of full time, i.e. 50,000 euros and could reach 100,000 euros for senior executives, figure Mozart Consulting. Abysmal. So, “companies are increasingly relying on employees ready for immediate employment, adopting a “plug and play” approach (i.e. a strategy focused on quickly maximizing results), while using the “carrot and stick” system to stimulate overall performance”, analyzes Nicolas Lepercq, who judges that this is not the right solution.
The punishment is turnover, the other side of an expensive short-term vision. Indeed, 30% of permanent contracts end before 12 months and even 10% to 20% of permanent contracts end before 6 months (Insee, 2022). This represents a shortfall since, according to Nicolas Lepercq, between recruitment and the rise of the candidate, there is the integration process, training, adaptation which will take around eight months before value is created. Not making a mistake means investing in “human capital” for managers and for zapper employees, stopping in order to develop lasting expertise or skills: this is only acquired over time and often over time. same company.
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