In an ideal world there would not be any bad recruitment hires and everyone would have fantastic retention. However, recent statistics and reports put together by the Recruitment Employment Confederation (REC), Monster, Indeed and the Office for National Statistics (ONS) provides us with a very different story.
Businesses in the UK are failing to hire the right candidate for two out of five roles despite the cost of making a mistake in the recruitment process.
Candidates in mid-level management positions earning £42000 per annum can end up costing a business over £132000.
85% of decision makers within HR admit they have made a mistake with a bad hire.
Increased staff turnover, training costs and lost productivity were some of the key factors when calculating the cost of a bad recruitment hire.
Data from Leadership IQ shows that 46% of hires turn out to be bad hires within 18 months.
39% of employers admit the assessment and interviewing process of candidates needs improvement in the hiring process.
Lost client opportunity is also a factor if the bad recruitment hire has not looked after a client and the client goes elsewhere.
Statement from REC chief executive Kevin Green:
“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.
If you would like to speak to one of our qualified consultants about reducing the risk of a bad recruitment hire, please get in contact.