We often hear the question: “Why are your assessments so expensive?” It’s the business equivalent of ABBA’s “Money, Money, Money” playing on repeat. But the real question isn’t “Can we afford to assess?” It’s “Can we afford not to assess?”
The cost of a bad hire, especially at a senior level, is substantial. And it’s a surprisingly common problem. A Career Builder survey found that 74% of employers have made a bad hire in the past. It’s not just the direct costs – onboarding, training, severance – but the indirect costs that truly impact a business’s performance.
Onboarding a new employee in South Africa averages around R30,000 – and that figure escalates significantly for senior positions. (Jennifer Barkhuizen, Managed Integrity Evaluation). Replacing a bad hire can cost as much as a quarter of their annual salary. (Francois de Wet, Wamly Recruitment).
The True Impact on Your Business
Consider the less quantifiable but equally damaging consequences:
- Loss in productivity: A bad hire negatively impacts team goals and performance.
- Lost opportunities: Either in the form of new business or a chance at employing a more suitable candidate.
- Reduced team morale: Challenges in team dynamics, demotivation, and conflict arise.
- Reputational risk: Suboptimal client interactions and poor decisions can negatively impact your brand and reputation.
What does “Good” look like?
How do you mitigate these risks? It starts with defining what “good” looks like for your organisation. This requires a strategic approach:
- Align assessment strategy with business strategy: Your talent decisions must directly support your overall business goals.
- Develop a clear framework: Define the competencies and leadership styles essential to achieving your current strategic objectives and growth into the future.
- Gather comprehensive data: Don’t rely on surface-level impressions. Utilise a comprehensive assessment battery, conduct thorough interviews, and collaborate closely with your assessment provider for deeper insights.
The Value Proposition:
So, how do you ensure you’re making the right talent decisions? Investing in high-quality, deeply insightful assessments, and spending time on feedback can ensure that your organisation makes informed leadership decisions that align with long-term success.
At Joint Prosperity, we understand that our assessments represent an investment. We believe the value significantly exceeds the price. We offer a high-touch approach, working closely with you to understand your business, future plans, and talent needs. We delve deep with candidates to advise you on the individuals best suited to drive your strategic goals. We’re not just ticking boxes; we’re partnering with you to build your talent.
Are you ready to discover what “good” looks like for your business?
Contact us to start the conversation – meetus@jp.co.za