New figures show that, by using their expertise to get people into the right jobs, professional recruitment and staffing firms increase UK productivity by £7.7 billion each year.
According to the Recruitment and Employment Confederation’s (REC) report into the economic and social impact of recruitment, the overall cost of a bad hire to a business is estimated to be three times higher than the salary paid, so getting recruitment right has the potential to be huge driver of recovery.
The study also found that four in five (78%) people who found a job through a recruiter said it was a good match for them, and two in three businesses (63%) said that working with a recruitment agency had helped them increase the diversity of new recruits.
Neil Carberry, Chief Executive of the REC, commented on the latest findings, “For too long, many CEOs have spoken of people as their biggest asset, but left the process of bringing staff into the business as something to be done at low cost and high speed. By contrast, employers that treat recruitment as a priority issue because of the value it adds unlock competitive advantage. Bringing in the best talent boosts productivity – especially where organisations work with recruitment experts. Companies wouldn’t go to court without the best lawyers – they shouldn’t hire without the best recruitment and staffing service.
“With company and worker needs changing, and the country moving towards recovery from COVID-19, getting recruitment right will play a vital role in boosting the economy. We’re calling on government to work with the REC on the plan for jobs, ensuring that all forms of employment are considered in government thinking, so families all over the country can feel the benefit that good recruitment brings. From temporary work to permanent roles, at home or at a workplace, recruiters have stepped up through the pandemic to keep the wheels of our economy turning. And they will be more important than ever as we bounce back – helping government, businesses and employees build a better world of work.”
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