The five biggest recruitment blunders Kiwis businesses make, according to hiring expert

Jonathan Rice, director of Joyn. Photo / Supplied

Kiwis are wasting $600 million a year by using outdated recruitment methods, says a new entrant to the hiring market.

Jonathan Rice, director of on-demand recruitment agency Joyn, said companies often do not know how much work they're paying the agency for.

"If an organisation goes through a generalist recruitment agency, they'll pay around 15 per cent of a candidate's salary if they fill the role. This 'contingent' recruitment model has become tired and outdated," Rice said.

According to Statistics New Zealand, last year local organisations spent $1.44 billion on recruitment and an averageof $1.13b over the past five years.

"Companies often don't know how much work they're actually paying the recruitment agency for and can often feel in the dark during the process," he said.

Firms needed to prepare for the large number of staff that resign over the New Year break, he said.

"Not only are they already looking for talent in a real talent-short market, they are going to come back to even more pain in the New Year."

Top five recruitment mistakes businesses should avoid, according to Rice:

1. Businesses recruiting themselves

"Businesses are great at the business they know and recruitment is an unwelcome distraction, which they often don't have the required time and expertise to do properly," Rice said.

Time spent away from the core business, doing what they do best, costs money and can often result in a bad hire, he said.

"Recruitment is a minefield that businesses are often unaccustomed with leaving them susceptible to fraudulent candidates who talk a great game at interview but can't deliver – something a trained recruiter is skilled at assessing."

2. Hiring mates

"Kiwis love hiring a mate or a friend of a friend. And while this can work out, very often organisations put more trust in personal relationships than they should and neglect to do their due diligence," Rice said. "Just because you get along at a barbecue doesn't mean that translates to the boardroom."

Doing background checks, speaking to former employers and psychometric testing cannot be overlooked, he said.

3. Not doing background checks

"Far too often we hear of stories where employers become enamoured with a candidate after a good interview and rush to put an offer on the table.

"They might make a cursory call to one former employer but they don't dig deeply enough to unearth the things you really need to know before penning an offer of employment."

4. Working with commission-based agencies

"If an organisation goes through a generalist recruitment agency, they'll pay around 15 per cent of a candidate's salary if they fill the role. This 'contingent' recruitment model often drives the wrong behaviours with inexperienced recruiters focusing on a sale rather than a solution," Rice said.

5. Taking too long to find the right candidate

Great candidates don't hang around, particularly in a growth market, Rice said.

"A professional recruiter works diligently but also at pace to make sure you don't miss out. Don't think that perfect candidate will be waiting for you when you return from annual leave. Look for a recruitment solution that can devote their time to you exclusively without having to service the demands of a host of other clients."