Businesses wasting significant amount of money on ineffective hiring practices

New research shows that inefficient hiring and retention practices are potentially costing businesses hundreds and thousands of pounds each year.

Many organisations aren’t even aware of these costs, as they’re not tracking the return on investment in their recruitment activity.

That’s according to data from the latest Resourcing and Talent Planning report compiled by Omni RMS and the CIPD.

Commenting on the findings, Louise Shaw, Managing Director at Omni RMS, said, “It’s astounding that, so few companies are tracking the return on investment in their recruitment activity. People are the largest expense for most organisations and failing to track and monitor where inefficiencies are having a detrimental impact on budgets will have a huge impact.

“The cost of a wrong hire goes beyond recruitment cost, though. It also disrupts business performance as well as existing team morale which has the potential to increase attrition rates further. That does, in turn, put further pressure on budgets to replace lost talent.

“It is critical that organisations track the effectiveness of their hiring activity. If they are seeing high levels of turnover they need to understand where the inefficiencies along the hiring process are – be it with how they attract, select or onboard.

“The challenge is that many organisations lack the skills and tech to measure data that goes beyond the traditional one such as time to hire which is irrelevant when there is a revolving door.

“At Omni, we see so many organisations throwing money at a problem – namely skills shortages – because they’re unsure of the solution. But this does more harm than good. As we begin to see glimmers of improvement in the recruitment landscape, companies need to have a talent strategy that allows them to optimise resources, make data-driven decisions and, perhaps more importantly, justify their investment.”

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