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SMEs’ £69million recruitment waste
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SMEs’ £69million recruitment waste
British Small and Medium Enterprises (SMEs) waste £69 million on poor recruitment decisions every year
22 per cent of new recruits or 55,000 new employees leave their job within the first six months
Hiring the wrong staff is costing British Small and Medium Enterprises (SMEs) a wasteful £69 million each year, new analysis from Jobsite.co.uk reveals.1
The country’s small and medium businesses invest £300 million a year in hiring 250,000 employees.2 However, not finding the right staff first time around is costing them dear, as one in five new hires (22 per cent) leave within six months of starting.3
Many SMEs are therefore having to pay to recruit for the same position twice within 12 months, at an average cost of £1,200 a time.4
Although online tools can broaden small firms’ reach considerably, few SMEs appear to be using them, with only a quarter (25 per cent) using internet jobs boards, for instance.5 But as 80 per cent of jobhunters use the internet as their first port of call when looking for vacancies,6 this may explain why one in four small businesses (27 per cent) cite a lack of suitable candidates as the main obstacle to successful recruitment.7
However, financial waste through poor decision making is not the only problem facing small businesses. As 99 per cent of SMEs have fewer than 50 employees, losing just one or two people within a year can cause major disruption, with research showing that more than 70 per cent of bosses believe employee departures have a negative effect on business performance.8
Keith Potts, MD of Jobsite.co.uk, commented: “For any business, saving time and money is important. This is doubly so for small businesses where these resources are even more limited in supply. Hiring the wrong people is costly and can be seriously detrimental to the productivity – and even the future – of small and medium companies, particularly in the current economic climate.
“SMEs need to think about working with organisations that can do the hard work for them but still offer solutions that suit the scale of their needs – broadening their recruitment reach while still allowing them to fill one-off or limited numbers of vacancies.â€
Innovative – and cost effective – solutions are available through internet-based recruitment sites, which allow SMEs to take advantage of services that were previously the preserve of big businesses.
Jobsite.co.uk’s online self-service offering enables SMEs to reach 40 per cent of the UK population through vacancy advertising and its CV database, potentially saving businesses between 49 per cent and 97 per cent of their recruitment costs – or between £154 million and £295 million a year.9 These services are paid for by credit card, enabling SMEs to fill small numbers of vacancies quickly without the need to commit to long-term contracts.
Recruiters looking to improve their interviewing can also brush up on their skills through interactive tools such as BeMyInterviewer.co.uk.
The UK’s small businesses are incredibly important to the economy and employment. Official figures show that they account for almost 60 per cent of the UK’s private sector employment – more than 13.5 million employees.10
Top tips for small business recruitment:
Interview better – Excellent interview technique is an invaluable skill for a recruiter. Knowing what to ask – and how – in order to get a feel for a candidate can save your company thousands in wasted interviews and recruitment fees. A good technique to grasp is competency-based interview techniques – finding out how candidates acted in a certain situation and why, to determine how they may act in a similar situation in future. Kirsty MacCulloch of GET demonstrates some excellent competency-based techniques on BeMyInterviewer.co.uk.
Training – a key part of retaining your staff is training. It can make workers more motivated and more productive and by keeping your workers stimulated, you can ensure they don’t get bored and start to look elsewhere
Building teams – by making employees feel like part of a team, you can make sure they feel safe and secure in their work reducing the risk of them looking for something new
Promote internally – before taking on someone new, take a look at the wealth of talent and ability currently sitting at your desks. Is there someone you can promote or can you create a role-share for two junior colleagues? Making the most of the people you currently have can help you and your staff to remain contented and keep motivated.
Source:
http://www.onrec.com/newsstories/23012.asp
22 per cent of new recruits or 55,000 new employees leave their job within the first six months
Hiring the wrong staff is costing British Small and Medium Enterprises (SMEs) a wasteful £69 million each year, new analysis from Jobsite.co.uk reveals.1
The country’s small and medium businesses invest £300 million a year in hiring 250,000 employees.2 However, not finding the right staff first time around is costing them dear, as one in five new hires (22 per cent) leave within six months of starting.3
Many SMEs are therefore having to pay to recruit for the same position twice within 12 months, at an average cost of £1,200 a time.4
Although online tools can broaden small firms’ reach considerably, few SMEs appear to be using them, with only a quarter (25 per cent) using internet jobs boards, for instance.5 But as 80 per cent of jobhunters use the internet as their first port of call when looking for vacancies,6 this may explain why one in four small businesses (27 per cent) cite a lack of suitable candidates as the main obstacle to successful recruitment.7
However, financial waste through poor decision making is not the only problem facing small businesses. As 99 per cent of SMEs have fewer than 50 employees, losing just one or two people within a year can cause major disruption, with research showing that more than 70 per cent of bosses believe employee departures have a negative effect on business performance.8
Keith Potts, MD of Jobsite.co.uk, commented: “For any business, saving time and money is important. This is doubly so for small businesses where these resources are even more limited in supply. Hiring the wrong people is costly and can be seriously detrimental to the productivity – and even the future – of small and medium companies, particularly in the current economic climate.
“SMEs need to think about working with organisations that can do the hard work for them but still offer solutions that suit the scale of their needs – broadening their recruitment reach while still allowing them to fill one-off or limited numbers of vacancies.â€
Innovative – and cost effective – solutions are available through internet-based recruitment sites, which allow SMEs to take advantage of services that were previously the preserve of big businesses.
Jobsite.co.uk’s online self-service offering enables SMEs to reach 40 per cent of the UK population through vacancy advertising and its CV database, potentially saving businesses between 49 per cent and 97 per cent of their recruitment costs – or between £154 million and £295 million a year.9 These services are paid for by credit card, enabling SMEs to fill small numbers of vacancies quickly without the need to commit to long-term contracts.
Recruiters looking to improve their interviewing can also brush up on their skills through interactive tools such as BeMyInterviewer.co.uk.
The UK’s small businesses are incredibly important to the economy and employment. Official figures show that they account for almost 60 per cent of the UK’s private sector employment – more than 13.5 million employees.10
Top tips for small business recruitment:
Interview better – Excellent interview technique is an invaluable skill for a recruiter. Knowing what to ask – and how – in order to get a feel for a candidate can save your company thousands in wasted interviews and recruitment fees. A good technique to grasp is competency-based interview techniques – finding out how candidates acted in a certain situation and why, to determine how they may act in a similar situation in future. Kirsty MacCulloch of GET demonstrates some excellent competency-based techniques on BeMyInterviewer.co.uk.
Training – a key part of retaining your staff is training. It can make workers more motivated and more productive and by keeping your workers stimulated, you can ensure they don’t get bored and start to look elsewhere
Building teams – by making employees feel like part of a team, you can make sure they feel safe and secure in their work reducing the risk of them looking for something new
Promote internally – before taking on someone new, take a look at the wealth of talent and ability currently sitting at your desks. Is there someone you can promote or can you create a role-share for two junior colleagues? Making the most of the people you currently have can help you and your staff to remain contented and keep motivated.
Source:
http://www.onrec.com/newsstories/23012.asp
