Hiring mistakes are costing UK businesses billions each year

Discovering you’ve hired the wrong person for the job can be hugely frustrating for any business, especially if you’ve invested considerable time, effort, and resources into the recruitment process. But way beyond irritation, a hiring mistake can have significant financial downsides. Hiring mistakes are estimated to be costing UK businesses billions every year, making them one of the biggest threats to forecasted profits.

A report by the Recruitment & Employment Confederation (REC) revealed that businesses in this country are hiring the wrong person for two out of every five roles.

Additionally, the more senior a role, the more expensive a mis-hire becomes. That’s not just because of the cumulative hit of pay, severance packages, training, lost productivity, and re-hiring, but because of the potential ripple effect of lowered morale or performance in the team around them.

And then there’s the customer to consider; a mis-hire could have a damagingly detrimental effect on a company’s reputation. If product quality or customer service drops as a result, there’s a risk that unhappy clients lose faith and take their custom elsewhere. It only takes one bad impression to derail a relationship.

So why are so many businesses not getting the people they need?

Whilst sometimes, a mismatch could never have been predicted, there are some basics to minimise the risk of it happening regularly.

Aside from genuine reasons the appointment simply doesn’t work out, some hiring mistakes can be due to a failure in the recruitment process. This could be either because a candidate’s skill level hasn’t been properly assessed (so once they start the job it becomes clear they are not a match for the role) or because they are a bad fit for the culture of a company.

Just because someone has impressive credentials and proven successes in previous roles, doesn’t necessarily mean they are the one for you or your vacant position. Top talent and best-fit talent aren’t always the same thing, but it can take a rigorous recruitment process to spot the difference.

Where there’s a shortage of candidates in a sector, and companies find themselves facing a staffing crisis – as so many have in 2021 and 2022 – bad hiring decisions can also be driven by a panicked sense of urgency. Pressure to fill a position immediately, especially when a business is growing fast, can lead to temptation to settle for mediocre candidates simply because they appear to be the best that’s available.

It’s true that today’s market is highly competitive, and securing top talent can be challenging, but that doesn’t have to have a negative impact on your ability to pinpoint someone who will be an asset for your business, not a potentially costly liability.

At Vidu we appreciate just how important it is to find the right candidate, first time, to avoid expensive mistakes.

That’s why we work in partnership with businesses to fully understand them and what it is they need – every aspect of a role that’s open, the culture, the goals, and exactly what they want a new employee to bring.

Additionally, our transparent candidate profiles are focused around an introductory video, where it is harder for an applicant to hide behind a CV. This openness drives a positive hiring and interview process on both sides of the table.

Our interactive process will help you search for that synergy, and then make the right connection – so your business doesn’t become another bad hire casualty.

Reach out today to avoid any costly mistakes for your next hire.