UK businesses are failing to recruit the right person for two out of five roles despite the significant financial costs of making mistakes, according to a new report from the Recruitment & Employment Confederation (REC).
Making the right hire and the cost of getting it wrong explains the common mistakes employers make, defines the real cost of poor hiring, and offers practical advice to businesses seeking to avoid financial risks at every stage in the hiring process. The report shows:
- 85 percent of HR decision-makers admit their organisation has made a bad hire, and a third (33 percent) believe that these mistakes cost their business nothing
- a poor hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000
- the hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover
- four in ten employers (39 percent) admit that the interviewing and assessment skills of their staff should be improved.
Making the right hire and the cost of getting it wrong contains a step-by-step guide to calculating the price of a bad hire, enabling employers to take an informed and measurable approach to investing in recruitment.