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Hiring decisions can have a huge impact


In today’s tight labour market, the answer might not always lie in a candidate’s level of experience. Growing businesses are recognising that selecting people on potential, passion and possibility – a ‘high potential hire’ may be the best solution when the experience is somewhat elusive.

The high potential hire can have a huge impact on any business. According to a recent report from Indeed and the REC, poor hiring decisions are more common and frequent than initially thought. Crucially recognising and rectifying a failed hire is a costly business. Costs on fees and money spent on training are easily measurable, however the price of a bad hire to an organisation also includes those costs that are more difficult to establish. They can include staff morale and turnover, productivity, reputation and delivery of client solutions, those are the often overlooked fallout from bad hires.

Interestingly, even at the highest management level, 33% of those who work in business believe that bad hires have cost them noting over the past year. Thus highlighting a significant gap in knowledge about how much a poor hiring decision really costs their business.

As we know, our employees are the most valuable asset to our business. According to the report, businesses in the UK are under investing when called upon to make the all-important hiring decisions and missing out important stages of the recruitment process. Not enough time is spent to carry out adequate research on candidates and company needs. A third of HR decision makers surveyed suggest that the business needed to fill the position too quickly or the talent pool was too small. Fierce competition, shortage of candidates and scarcity of skills are some of the key challenges facing the UK labour market.

A reinvigorated process is required between employers, HR professionals and recruiters to build closer and more effective partnerships. A properly defined, comprehensive resourcing plan is the answer to better hiring.

For more information contact Louise Hewett:

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