The recruitment processes of UK employers are coming under increasing strain, perpetuated by what appears to be a constant cycle of poor hiring decisions.
A new report from the Recruitment and Employment Confederation (REC) highlights the problems in the hiring process experienced by many employers. Perfect match : Making the right hire and the cost of getting it wrong found that UK businesses fail to hire the right person for two out of every five vacancies and also underestimate the cost of their error.
The report notes:-
- 85% of decision makers admit to making a bad hire but one third believe there is no cost to their business associated with this decision. One in five ‘don’t know’ how much a bad hire costs their company.
- A bad hire with a salary of £42,000 may cost your business over £132,000.
- Four in ten employers believe that the interviewing skills of their staff require improvement.
A further investigation by Deloitte found that one third of non-British workers are thinking of leaving the UK. To pile on the pressure for HR, highly skilled EU workers are the most likely to leave, with nearly half considering a move within the next years. Power Up raises concerns over post Brexit immigration plans and the potential talent shortage facing the UK.
Yet again, HR finds itself facing a crisis which requires a long-term approach but employers appear reluctant to address fundamental and longstanding recruitment issues, instead reverting to a default position of outdated approaches to hiring and candidate selection.
It’s time to break that cycle with the following strategies:-
Take unconscious bias seriously
One in five hiring managers make a decision on a candidate within one minute of meeting them, dismissing all other evidence gathered during the recruitment process and relying on ‘confirmation’ bias or intuition. Only one in three wait until after the interview. Unconscious bias is a recurring problem for UK employers who repeatedly return to the same talent pool and dismiss the hiring data available to them. The number of hiring failures cited by REC suggests that something has to give in order to prevent a potential talent crisis. Supporting hiring processes with HR technology that helps to reduce that bias is a starting point.
Upskill your workers
Investment in digital skills training remains low in the UK, at an estimate of £109 per person per year. Last month the CIPD suggested that UK employers are ‘sleepwalking’ towards a ‘low value, low skills economy’. Employers who fail to invest in digital skills training will jeopardise both their hiring success and their ability to meet business goals. The lack of digital tools is the reason that a fifth of employees leave their jobs.
Embrace flexible working
The Flexible Jobs Index 2017 from Timewise found that only 10% of open jobs with a salary ranging between £20,000 to £34,000 offer flexible working and higher paid jobs are less likely to offer this option. One in five employees are also reluctant to request flexible working. A lack of flexible working options may not only result in lower retention rates but it may deter talent from applying to your jobs. Your recruitment data will identify the comparative success of jobs offering flexible working versus those without. The gig economy offers another option for tapping into a broader talent pool. Our white paper, The Rise Of The Gig Economy provides detailed insight into how to manage a remote workforce effectively and to tap into the talent pool with the skills your business needs.
No hire is better than a bad hire
Hiring ‘anyone’ for the time being to plug a vital gap is not an acceptable recruitment strategy. Even a short term bad hire impacts staff morale and turnover at a time when staff retention is a growing problem for employers. Our previous article 5 Reasons You Made A Bad Hire looks at the underlying problems in your hiring process and the reasons for repeated ‘failure’ in candidate selection. Advorto's recruitment software is designed to help you create a more streamlined process and connect quickly with the talent in your pipeline. Focus should also be made on retaining the existing talent in your business by creating an effective employee experience. This is achieved by a number of measures which include incorporating a culture of leadership and learning, prioritising employee wellbeing and offering meaningful work.
Automate key processes
In its recommendations, Deloitte urges employers to embrace digital technology and automate repetitive tasks. This issue remains a stumbling block as nearly half of UK CEOs are failing to address the impact that AI and automation will have on their business. A new report from PWC Exploiting The AI Revolution suggests that AI will increase the UK’s GDP by 10% and that the automation of mundane and repetitive tasks will boost productivity and wages. For HR, the easiest way to achieve this is by supporting hiring processes with recruitment software designed for that purpose. Incorporating automation in talent acquisition strategies will also reduce the growing trend of failed hires.
It isn’t all bad news for HR. The UK is still considered the most desirable place to work by people outside the UK. To attract and retain that talent, however, the cycle of intuition based hiring decisions, low retention rates and poor productivity must be replaced by data driven recruitment and a renewed focus on employee engagement.
Break your cycle of bad hiring decisions. Support your talent acquisition strategy with world class recruitment software from Advorto, designed to reduce the potential for a bad hire and help you to hire better people faster. Contact us today to find out more.
Image : 123rf.com/profile_chrisdorney
 Source : https://www.rec.uk.com/news-and-policy/press-releases/hiring-mistakes-are-costing-uk-businesses-billions-each-year-rec
 Source : https://www2.deloitte.com/uk/en/pages/international-markets/articles/power-up.html
 Source : http://timewise.co.uk/