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Hiring the wrong person costs UK businesses billions

Recruiters are being urged to be mindful as British businesses are losing billions of pounds a year through hiring mistakes. 85% of HR decision-makers admitting their company has hired the wrong candidate, but a third still believe the mistake hasn’t cost the firm any profits.

A report from the Recruitment and Employment Confederation hopes to identify the common pitfalls recruiters make, and aims to help businesses work out how much money could be lost through hidden costs in unnecessary training, less efficiency and hiring new staff. Employing someone who is better suited in another role can also have an effect on other staff, lowering morale and increasing turnover.

“Getting recruitment right is even more important during a time of economic uncertainty because businesses need to ensure they’re not wasting money,” said REC chief executive Kevin Green. “Shockingly, we discovered that employers are completely underestimating the financial impact of getting recruitment wrong, and not learning how to improve.”

Produced in partnership with job site Indeed as part of the Good Recruitment Campaign, the team behind the report want to inform recruiters of how to improve the selection process. With around four in 10 employers admitting that their interviewing methods could be reassessed.

“Hiring is one of the most important aspects of business growth, but one of the most costly if done wrong,” added Bill Richards, UK managing director of Indeed. “In today’s tight labour market there is a full-blown battle for talent, and employers need help navigating the terrain.”

“The good news is that when it comes to connecting candidates to open positions, search engines like Indeed have emerged as a powerful tool for employers. Our mission is to help people find the right job, and the insights raised in this report will help hirers source and retain candidates to meet their business needs.”

For more information you can visit their website