When it comes to hiring the right talent, there is no easy way or short cut, especially when the cost of rushed/poor recruitment is so high! The Harvard Business Review states that 80% of employee turnover is due to bad hiring decisions. It is definitely evident that the cost of bad hiring decisions runs high.
There are many impacts of employee turnover, one being the time and financial cost of a recruitment. High costs are one of the more discussed negatives of high turnover. Every time an employee leaves and is replaced, there are costs associated with the process of losing the first employee and hiring and training the new one.
Another impact is the opportunity cost of work not being done, this includes- delayed projects, reduced activity and customers being neglected. This can to decreased efficiency and productivity. In addition, not having future managers is another issue which could lead to a lack of performance. Also impacting of success and reputation of a programme in the business.
But why do so many companies get it so wrong? Gamble, who runs the Chicago-based Jean Gamble & Associates, believes “wrong hiring” happens when hiring managers and HR personnel/teams confuse the job description with the job criteria.
A recent survey by Robert Half showed that 36% of 1,400 executives surveyed felt the top factor leading to a failed hire, away from performance issues, are poor skills match. The second most common reason (30%) was unclear performance objectives.
Further recruitment challenges: The aftermath of Brexit
The UK’s vote to leave the EU in June 2016 caused uncertainty within the recruitment industry. The predictions were highly speculative. However, that has quickly changed. Organisations are now hopeful about their abilities to meet the challenges that lie ahead. They are confident that their expertise and access to technology will help them to embrace the opportunities that come with change.
However, there is a lack of qualified candidates across all businesses, and this is challenging firms to work harder. Candidates are now stepping up more and need to demonstrate that they have the ability and knowledge to gratify the demand for specialist skills.
A lot of recruiters have experienced the lack of skills, 83% of agencies say it is due to the sector and 65% believe that the problem will still continue over the past 2 years.
Importance of good recruitment
Measuring employee engagement is vital to the success of businesses. One trend that has taken place in 2017 is the retention and succession of employees within organisations. Good leadership is important within the work environment. It is important that businesses have some proactive talent retentions strategies in place.
An effective recruitment and selection process reduces turnover. It is important that candidates have the right skills and qualities required for the job, in order be proactive in the role. Unclear roles are another thing that takes place within the work industry, often when candidates start the actual job they find it to be different to what they expected. Therefore, is important that job roles are specific and clear.
How are you going to tackle these problems?