Small business owners would like to see the hiring process sped up
SHL Talent Management have released new research indicating that small and medium-sized business owners may be wasting thousands of pounds in their recruitment techniques.
The company’s survey found that those who employ up to 250 people and wasting both time and money every year. It was found that 88 percent of respondents have regretted a hiring decision in the past, although the reasons given varied.
The most common factor given was ‘lack of skills’ (47 percent), followed by ‘subsequent poor performance’ (35 percent) and the individual ‘not being up to what was required’ (33 percent).
Of the respondents, 68 percent said they plan to hire new staff in the next 12 months, with 61 percent planning to use a recruitment consultant. Of those, 46 percent think a recruitment fee of up to 15 percent of the individual’s salary is acceptable – this could be around £4,000 in total, given that the average UK salary is £25,900.
SHL have argued that objective assessment should be used in assessing candidates, especially as 87 percent of respondents said that they felt cultural fit and attitude are equally as or more important than qualifications for roles. However, the majority (87 percent) of small business owners said that they felt objective assessment was too expensive or unnecessary.
Julian Wenban, SME business manager at SHL, said: “Arguably the use of objective assessment when recruiting is even more important for a smaller organisation, where management has less time and is more concerned with controlling cost.
“Assessment can provide any business, small or large, with invaluable insight as to whether an individual will thrive in that particular environment - this reduces the risk of a bad hire and ultimately saves the business money with increased productivity and reduced staff turnover.”