Poor hiring decisions are generating losses of up to £15,000 for UK businesses, with two thirds (66.1%) of recruitment professionals admitting to losing a significant amount of money on hires that haven’t worked out. This is according to the latest research from the UK’s leading 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% of recruitment professionals have lost out on between £15,000 and £30,000 for their business, while 14.4% admit to losses of over £30,000. Other key findings include:
- Three quarters (78%) of recruiters estimate that it costs their business up to £10,000 to hire a new recruit
- Over half (55.3%) believe that vetting candidates properly before they hire them would ensure poor recruitment doesn’t cost their business
- …A further 21.3% believe that keeping recruitment costs down by using tools like job boards and social media could help
Lee Biggins, founder and managing director of CV-Library, comments: “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.”
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. In fact, 52.1% said they don’t bother keeping on top of these trends, despite 68.1% believing that it is beneficial to do so. A further 59.7% said that these trends do not influence their recruitment strategy.
Biggins continues: “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 have 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.”
Recruitment professionals do understand the need to implement a strong recruitment strategy, with respondents believing that workers can be affected by poor hires. In fact, respondents cited high staff turnover (44.4%) and decreased productivity (16%) as some of the biggest risks, followed by financial loss (22.2%), low morale (8.3%) and poor employer branding (6.9%).
Biggins concludes: “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. 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.”
Download the full report to find out more: https://www.cv-library.co.uk/recruitment-insight/report-real-cost-bad-recruitment/
