Recruitment Crisis Costing Businesses as New Hires Fail to Meet Standards
July 10, 20194min
New research has shone a light on a potential recruitment crisis which could lead to “failure” for firms.
A study published by recruitment-tech firm, Worksome found that up to a third of new employees are not passing their six-month probationary reviews, while only eight percent of businesses feel new hires have all the skills needed for the job, costing companies thousands of pounds and creating long-lasting negative effects.
The research found that, on average, businesses spend nearly £6459 a year on recruitment and hiring. If a candidate doesn’t work out, not only are these fees lost, but the salary for the probationary period is also wasted. With the average advertised UK salary being £35k, this equates to potentially £17k lost over a six month probation period.
In total, that means that one in every three new hires could be wasting £23k for a business.
The research also revealed that over a quarter of businesses prioritise cost over quality when it comes to recruitment, but 21 percent say they later come to regret that decision. Meanwhile, 32 percent of business owners say recruiters are too pushy, and rush them to make a decision.
According to Mathias Linnemann, co-founder of Worksome, there are many reasons why a business may turn to a recruitment consultant.
“The prospect of saving time can be a major lure especially in a world where it’s essential to fill positions quickly, and promise to deliver a quality of candidate that businesses are otherwise unable to access,” he said.
“For business leaders lacking confidence in recruitment, the promise of quickly supplied talent is enough to make the recruiter’s commission fees seem worth it.
“However, our research demonstrates that the traditional recruiter method of securing talent is simply no longer working. Businesses are clearly feeling that there is lack of knowledge in their business which – in a fast moving world where getting the right skills, at the right times – could be the difference between success and failure.”
Sharing his thoughts on how employers and recruiters can ensure that they don’t fall foul of the failings in the recruitment process, he added: “With a third of candidates not making it past their six-month probationary period, we can see that something is broken in the recruitment and hiring process.
“While our research suggests pain-points relating to the use of recruitment consultants, there is no one single factor to blame. For many businesses, recruitment consultants offer a vital service and so shouldn’t be dismissed, or all tarred with the same brush. If hiring managers can feel more confident about candidates and recruits before they walk through the door, they can take back a level of control and feel more empowered to make the right decisions.”
Experienced Irish journalist and former newspaper editor now helming executive editorial duties with Customer Experience Magazine, the UK's premier online source for Customer Experience news, features, and opinion, along with its sister site, CXM World.