Friday , August 6 2021

Bad employment is expensive for the company

Securex calculated the poor employment cost recovery: € 35,250 for employees, € 51,850 for managers and € 151,700 for the director. Internal employment often offers an interesting and less risky alternative.

From quarter to quarter, observation remains the same: Belgium is the European country showing the highest rate of vacancies after the Czech Republic. With the exception that the Czech Republic is in full force, untilIn Belgium, there are always more than 400,000 unemployed people.

What if, instead of looking for something else, the employer opted for internal employment? The report from the Social Secretariat of Securex represents "internal mobility" as one of the possible ways of eliminating the spread of vacancies. Especially since hiring a bad candidate is expensive. Very expensive. Securex estimates that this cost, from a large database, to 35.250 euros for an employee to be released after 24 months. For the manager, the cost is € 51,850, and for the board member € 151,700.

This cost has four components: registration fees, administrative costs at the level of human resources, the benefits of hunger (a total of 21% of the annual salary of the employee) and, ultimately, the cost of examining (or evaluating) the new candidate.

For executives and management, it exceeds the amount of legal notice. The announcement is negotiated in advance because the person wants to provide collateral. The notice is negotiated during the cancellation to prevent the occurrence of waves.

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Test the interior

Internal employment has the advantage that a company knows who's with it. can it is easy to determine whether an internal candidate meets his expectations. "Companies can, for example, entrust provisional projects to a candidate or exchange promising employees between internal departments or business units. Sometimes it is good to test someone's characteristics in the position of responsibility within the framework of one or the other.says Frank Vander Sijpe, Director of Securex for Research.

Of course, internal employment also carries certain risks, he admits. "The organization must start by wondering whether the chances of success are sufficient.When transmission is effective, it is not unusual for a person to be able to – and no longer want – to return to his previous function.In this case, only the initial formula still allows the protagonists to save the situation so that good elements can be lost and the wrong signal is sent to the internal community. "

Indirect costs

The cost of bad employment seems high but is based on minimalist assumptions. Securex has only calculated direct costs, ie those that can be clearly identified, such as the notice or cost of the engagement test or headgear. In some cases, the person must take over (independent consultant, temporary manager, etc.) while the company is looking for a new candidate.

"You must post all posts posted internally."

frank vander sijpe


Securex took the replacement for 11 weeks. For the employee it amounts to EUR 20,000, for the manager EUR 40,000, and for the Director EUR 49,500. Which brings the total account to 55.250 euros for the employee, 91.850 euros for the manager and 201.200 euros for the director.

Other indirect costs may also be imposed, such as a potential negative impact on clientele or possible colleagues' reactions (eg Other voluntary resignations, trade union actions, etc.).

Apply supervisors

It remains to see how to promote internal mobility within the company. In that sense, Frank Vander makes several recommendations. "First of all, you need to talk to an employee about their aspirations, how to see their professional future? This question was not discussed at all during the operational interviews. The result is that people often see more external features than internally. "

"You must show or advertise internally all positions that are posted within the company."

"Else, continues the expert for Securex, you need to show or advertise internally all the positions that are posted within the company. Third, educate supervisors who are sometimes afraid of losing a member of their team. Employees are not their property. "

Frank Vander Sipe is also about relaxing some of the principles hinder professional mobilitysuch as the connection of pay and rest at the age, for example.

He also noticed a direct relationship between job mobility and retirement age. "Where we are more mobile, as in Scandinavian countries, we usually work longer."

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