UK businesses are failing to hire the right person for two out of every five vacancies, a new report from the Recruitment & Employment Confederation (REC) has found.
This is despite the significant financial costs of making hiring mistakes, according to the research, which was comprised of a poll of 500 HR staff and interviews with agency heads.
A new report by the Recruitment & Employment Confederation has found that UK businesses are losing billions by making bad hires for two-fifths of vacancies.
The report, ‘Perfect match: Making the right hire and the cost of getting it wrong’, reveals that 85 per cent of HR decision-makers admit their organisation has made a bad hire, while one-third (33 per cent) believe that these mistakes cost their business nothing.
However, the report also found that a bad hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000. It was discovered that the hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover. This adds up to billions across the UK, according to the report.
The REC also revealed that almost four in ten employers (39 per cent) admit the interviewing and assessment skills of their staff should be improved.
REC chief executive Kevin Green said: “Getting recruitment right is even more important during a time of economic uncertainty because businesses need to ensure they’re not wasting money. Our calculations show that UK businesses are wasting billions every year because of the volume of hiring mistakes being made.
“Shockingly, we discovered that employers are completely underestimating the financial impact of getting recruitment wrong, and not learning how to improve.”
The REC said the first mistakes occur early on in the hiring process, when the company first identifies the need for new talent and the role is defined. According to the report, businesses spend an “inadequate” amount of time reviewing the needs of the hiring outfit.
However, report also said the job specification can be “misleading,” or incorrectly place the focus on “competencies instead of potential”.
The REC revealed that at the next stage in the hiring process, when companies start to entice candidates, they are not accessing talent pools big enough. The language used in job adverts can be “biased” towards certain candidates and a “limited budget” may result in not enough talent being reached.
According to the REC, the number of hiring managers who blame the depth or breadth of the candidate pool for the reason they made a bad hire was found to be almost half at large businesses.
The REC advised businesses to be “confident in recognising hiring mistakes made in the past and aim to rectify these through improved recruitment”.
Posted by Jon Aspinell on 29th June 2017
IT Business Analyst
£60000 per annum
A well-established global professional services firm is looking to add an ambitious and proactive IT Business Analyst...
City of London, London
An excellent opportunity has arisen for a Marketing Executive to join an international and well-established company. ...
A well-established, highly successful, HR consultancy based in Central London is looking for an accomplished HR Assis...
Casino Planning Executive
City of London
A dynamic and innovative online digital entertainment business are seeking a Casino Planning Executive, to join their...
PHP / Web Developer
£45000 - £55000 per annum
Web Developer / Software Development Business / up to £55,000 / Central London A relatively small but highly successf...
SQL Developer - London- £50,000
City of London, London
£45000 - £50000 per annum + bonus + benefits
SQL Developer - London - £50,000 plus bonus and benefits An international tech law firm, enjoying a market leading po...
How can you ensure cohesive communication with a team of remote workers?
Remote working is becoming increasingly adopted by organisations across the globe - whether that takes the form of an...
Can HR tech ease workplace conflict?
Workplace conflict is mostly unavoidable - particularly when businesses hire strong-minded talent with big ideas. Ego...
What to prioritise in your employee experience
The candidate experience has long been valued by employers looking to attract fresh talent. Now, however, companies a...
What can HR expect in 2018?
HR departments are set to face many new challenges in 2018, from the technological to the traditional. Among the most...
From communication to drive: The importance of soft skills
Soft skills are often difficult to quantify, yet they can become an absolute necessity for your business to reach its...
Only one in three workers say their employers offer training
Just one-third of workers report that their employer offers regular training opportunities, a new poll by the Trades ...