New research quantifies the impact of poor hiring decisions; it can generate up to £15,000 in losses for UK business. Two in three recruitment professionals admit to losing a significant amount of money on hires that haven’t worked out, according to a survey by the independent job board, CV-Library.
The study, which explored the attitudes of 200 in-house and agency recruiters across the UK, also found that 19.5 per cent of recruitment professionals have lost out on between £15,000 and £30,000 for their business, while 14.4 per cent admit to losses of over £30,000.
“To see in black and white just how much money bad recruitment is costing businesses is quite concerning. Today’s labour market is candidate led, and increased competition can often mean that businesses are rushing to snap up new hires, often missing out key stages of the vetting process in a bid to stay ahead of the competition,” explains CV-Library’s Lee Biggins.
The study revealed that over half of the recruiters surveyed believe that vetting candidates properly before hiring them would cut down the number of poor hiring decisions that cost businesses so highly.
Another key issue is that many businesses are failing to keep up with the latest candidate trends, which is placing them in a compromising position when it comes to finding the best recruits. 52.1 per cent of the respondents said they don’t bother keeping on top of HR trends, despite more two in three recruiters seeing the merit in doing so. A further 59.7 per cent said that these trends do not influence their recruitment strategy.
“Over the past couple of years, we’ve seen some of the top companies in the UK adapt their hiring processes because they’re on top of the latest trends. For example, Deloitte (has) taken a university blind approach to the screening process, while KMPG shortened its recruitment process to accommodate future working generations. It’s these moves that will really set businesses apart from the competition in the future, and ultimately attract the best candidates in the long run, because they understand how candidates want to be approached and assessed,” Biggins adds.
Recruitment professionals appear aware of the need to implement a strong recruitment strategy. Respondents cited high staff turnover and decreased productivity as some of the biggest risks, followed by financial loss, low morale and poor employer branding.
“Many businesses fail at the first hurdle because they don’t recognise how important it is to invest in a strong recruitment strategy. Poor hiring decisions can have a detrimental effect on your business outputs, but also, the morale and productivity of staff,” says Biggins. “Understanding that certain hires can make or break your business is key and these mistakes can quickly be avoided if you are investing in the right tools to help you vet candidates, hire efficiently, and successfully onboard new starters.”