Are hiring mistakes costing your business?

New research from the REC (Recruitment & Employment Confederation) states, hiring mistakes are costing UK businesses billions each year!
Businesses are failing to hire the right person for two out of five roles despite the significant financial costs of making mistakes, according to a new report from the REC. We all agree that employees are the heart of any business; helping to build a solid customer base which makes the business prosper, so why do so many underestimate the importance of the hiring process?
The impact of poor hiring decisions can certainly be underestimated; how can a member of staff on £42,000 per year cost the business three times their salary? According to the REC’s new report, a poor hire with this salary can end up costing the business £132,015.*
"The potential costs of a bad hire can encompass more than the time and money spent on repeating the recruitment process. A bad hire will have a negative impact on staff morale, a loss of productivity and potentially even an impact on your reputation and brand. All this translates to weakened performance. In fact, we calculate that for a middle manager, the cost of a bad hire can be over three times their salary." Kevin Green, Chief Executive, REC.
It’s so easy to overlook the real needs of your business when faced with the need to hire quickly; one in three business decision makers say that bad hires occur due to pressure to hire as soon as possible. There is also the issue that usual trade cannot stop whilst you search for the right candidate. The REC highlight that we can so easily focus on competencies of candidates instead of their potential or what the business really needs.
Scott Liversidge, Managing Partner at Flame Health Associates LLP commented: “As a specialist healthcare consultancy, we work hard to understand the current conditions of the markets we operate in. Focusing only on healthcare, ensures our Consultants and Partners are specialists in their niche sectors. As a result, we understand the markets and the individual needs of each client we partner with, which enables us to source the most suitable candidates for our client’s long term requirements and objectives.”
Flame Health Associates LLP is one of the UK’s leading specialist healthcare recruitment consultancies, with over 150 years of experience within the organisation.
As an organisation, we operate to International Standards ISO9001, in addition, we are Compliant Corporate Members of the Recruitment & Employment Confederation (REC) and are committed to its professional code of conduct.
If you are a candidate or client and have any questions regarding points raised within this article, please contact us confidentially on:
0800 085 0858 – careers@flamehealth.com – www.flamehealth.com
*This figure has been calculated based on the potential cost to appoint and then fire or attain the unsuitable candidate. (Research conducted by the REC for their article ‘Perfect Match: Making the right hire and the cost of getting it wrong”)
Read the whole report here: https://www.rec.uk.com/news-and-policy/research/perfect-match