4/3/2018 4:15:30 PM
UK companies lose billions through hiring mistakes
Recruiters have urged business owners to be careful in employing the right candidate as UK companies are losing billions of pounds every year through hiring mistakes.
A recent report by the Recruitment and Employment Confederation (REC) and jobs site Indeed revealed that 85% of HR leaders admitted to hiring the wrong candidate.
That in turn can cost more than £132,000 on average when accounting for wasted salary, training, team productivity and staff turnover.
S2 Recruitment – part of the award-winning Supertemps group – works closely with its clients to ensure they scrutinise staffing decisions now more than ever, given the financial implications.
Sarah Ellwood, Managing Director of the Colwyn Bay and Bangor-based firm, says the issue has become all too common in many sectors.
“There are several mistakes that businesses make, the most obvious one being when a member of staff suddently leaves a role and they rush the process to try and fill the position as quickly as possible,” said Sarah.
“That results in them often taking on a new employee that doesn’t tick all the boxes.
“If you’re not completely satisfied with how somebody interviews, then you’re unlikely to be satisfied with the job they do for you, so we encourage them to take as much time as is necessary to find the perfect candidate.”
She added that not having a clear idea of the role of the employee and who is the best fit are other hurdles that employers face, as well as failing to pursue references.
“Even if you have just interviewed the most fantastic candidate with an impressive CV, you should definitely have this backed up by others to get an idea of how they work,” said Sarah.
“It’s also easy to be so impressed with someone’s personality that you forget whether they’re good enough to do the actual job.
“Make sure you consider how they will fit into your workplace, but make sure it’s only one part of a much larger picture. Employers must remember that there’s a job that needs to be done.”
Employing someone who is better suited in another role can also have an effect on other staff, lowering morale and increasing turnover, but a third of business owners don’t believe it has a negative impact on profits, according to REC Chief Executive, Kevin Green.
He said: “Shockingly, we discovered that employers are completely underestimating the financial impact of getting recruitment wrong, and not learning how to improve.”
Bill Richards, UK managing director of Indeed, added: “Hiring is one of the most important aspects of business growth, but one of the most costly if done wrong.”
This article also appears on the S2 Recruitment
and Business News Wales