The Real Cost of Not Finding
the Right Talent

The cost of recruitment
DIRECT COSTS:
● Salary
● Social security contributions
● Bonuses
● Other benefits
MyNextCompany | The Cost of Not Finding Talent
INDIRECT COSTS:
● Outlining a profile and job description
● Publishing the job ad
● Processing CVs
● Interviewing candidates
● ...and many more

How to evaluate the cost of recruitment
TO CALCULATE THE REAL COST
calculate the hourly cost (gross salary + employer contributions + tax charges, etc.) of the employees involved,
multiplied by the time spent on each phase
MyNextCompany | The Cost of Not Finding Talent
Estimated cost of recruitment and
integration = between 15% and 25% of
the new employee's gross annual salary 15% - 25%
( + + + ) х =

FINANCIAL
Not being able to deliver on time
Slowing down company growth
Decline in the company’s reputation
Loss of clients and market share
The risks of being understaffed - 1
MyNextCompany | The Cost of Not Finding Talent

The risks of being understaffed - 2
HUMAN RESOURCES
Employee frustration
Management under pressure to deliver results
Increased number of errors
Drop in team morale
Absenteeism, burnout, loss of valuable employees
MyNextCompany | The Cost of Not Finding Talent

The risks of poor recruitment choices
THE CONSEQUENCES OF HIRING UNSKILLED OR UNMOTIVATED PEOPLE
MyNextCompany | The Cost of Not Finding Talent
26,3% of permanent contracts
of white-collar workers in
Belgium are terminated during
the first year
The employer bears the costs of
terminating the contract and
launching a new recruitment
drive
The operating loss linked to the
added value not received by the
company = at least 1.5 times
the employee's salary
26,3% 150%

Example: The cost of an unsuccessful hire
A new employee receives a gross monthly salary of €3,000
Gross annual salary: €3,000 x 13.92 months(1) = €41,760 per year
Cost of recruitment and integration = 15 - 25% of the employee’s annual salary (20% on average) = to €8,352
Contract is terminated after 2 months Gross salary received: €6,000
Cost to the employer Gross salary x1.8 (employers' fees, holiday pay, other social and fiscal charges) = €10,800
Operating loss Cost to the employer x1.5 = €16,200
1 "Are You Getting the Vacation Time You Are Entitled to?" MyNextCompany | The Cost of Not Finding Talent
Recruitment and onboarding: €8,352
+
2-month salary cost x1.5 operating loss: €16,200
Total cost: €24,552

Example: The potential annual cost
A company needs to hire 50 new people/year
Statistically, 26.3% (=13 people)
will leave within the first year
Potential annual cost (50 hires/year)
LOSS INCURRED BY ONE EMPLOYEE:
€24,552 x 13 employees
that will leave within 1 year
MyNextCompany | The Cost of Not Finding Talent
TOTAL ANNUAL LOSS:
€319,176

Conclusion
Unsuccessful recruitment can be at least as
harmful to a company as no recruitment at all
SOLUTIONS?
● Improve the overall recruitment process
● Use an external recruitment company The cost is
lower than the total of all internal costs, and generally
includes a replacement guarantee if the person employed
breaks the contract during the defined guaranteed period
● If you need to hire a lot of staff, choose an agency that can
build a long-term strategy around your needs
MyNextCompany | The Cost of Not Finding Talent

Sources
Damien Péan, Le coût réel d’un recrutement, GERESO, https://bit.ly/2J2Dovm
Tom Guillaume, Un tiers des CDI sont rompus dans la première année, L’Echo, https://bit.ly/2kbhBcB