Recruitment inefficiencies and unfilled vacancies are set to, at a minimum, cost the UK economy an estimated £132.6 million in lost productivity over the next year, according to a new survey from leading global recruiter PageGroup’s Enterprise Solutions team.
The study, which was conducted in partnership with the Centre for Economics and Business Research (Cebr) and YouGov, comprises findings from 100 recruitment decision-makers at large UK organisations (over 250 employees). It highlights the operational and financial toll of prolonged hiring processes and talent shortages on big businesses.
The Economic Cost of Hiring Delays and Inefficiencies
Nearly half (48%) of respondents believe filling vacancies will be a key issue in the coming year. The biggest reported challenges in this respect was a lack of available talent (34% of respondents put this in their top three concerns) and time to recruit (36%).
As such, one third (33%) of respondents expect hiring times to increase in 2025, leading to an estimated loss of six working weeks annually per organisation due to unfilled positions. This alone equates to a loss of £90.2 million in productivity nationwide.
Adding to this is the effect of inefficient recruitment processes – described as slow, overly complicated, and poorly structured – which result in wasted time, missed opportunities, and negative candidate experiences. Nearly half (47%) of respondents report losing an additional three working weeks annually due to such inefficiencies, amounting to another £42.5 million in lost productivity.
When you combine the effects of unfilled positions and inefficient recruitment processes, the total cost to the UK economy is an estimated £132.6 million annually, with large organisations losing a total of nine working weeks on average.
“Despite recent economic uncertainties, vacancy levels in the UK remain broadly in line with pre-pandemic figures, which were seen at the time as elevated,” says Christopher Breen, Head of Economic Insight at Cebr. “Despite employment growth stagnating recently, wage growth remains elevated, indicating that the fight to secure talent remains intense. Unfilled vacancies not only slow business growth but can also increase pressure on existing employees, leading to higher workloads, lower morale, and ultimately, greater staff turnover.”
Long-Term Recruitment Challenges
The survey also signals longer-term workforce planning difficulties, with decision-makers anticipating employee turnover (45%) and the availability of skilled talent (37%) to be amongst the biggest challenges over the next five years.
“The ever-evolving global talent landscape has become increasingly complex. Bolstered workers’ rights, expansive pay transparency directives, and shifting attitudes towards DE&I are just some of the nuances multinational businesses must navigate this year,” comments Patrick Hollard, Chief Customer Officer at PageGroup.
“These findings underscore the need for a fundamental shift in how UK businesses approach hiring and retention if they are to remain competitive – in fact, almost 1 in 5 UK businesses are considering adjusting their talent acquisition strategy over the next two years.”
Navigating Complex Recruitment Challenges
PageGroup’s newly established Enterprise Solutions team has been created to help large organisations tackle these recruitment challenges head-on. From sourcing permanent and temporary hires to providing Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP) solutions, as well as advisory services, Enterprise Solutions provides customisable talent strategies tailored to the unique needs of global enterprises.
Hollard adds, “Our Enterprise Solutions team combines decades of expertise with a global network across 36 countries, 24/5 Delivery Centres, and the latest AI technology to offer flexible, scalable solutions to the UK’s largest organisations. Whether it’s optimising recruitment workflows, reducing time-to-hire, or creating bespoke talent strategies, our aim is to help organisations improve efficiency and drive sustainable growth in today’s competitive labour market.”
To find out more about Enterprise Solutions, visit https://enterprise.page.com/
