The UK’s biggest recruitment challenges.
Businesses employing up to 250 people are losing 14% of their staff each year, only to see 39% of their new employees leave within six months, according to research by Oleeo, the leading global provider of innovative talent acquisition technology. This amounts to small to medium enterprises wasting an average of £125,347 a year on failed recruitment. The ‘See the Unseen’ research report examines the myriad of challenges HR teams are battling with in a bid to find people who are right for both their roles and organisations. These result in considerable, and often unseen, costs that need to be understood and addressed.
Using Oleeo Technology.
People often think of recruitment as a cost centre. They typically focus on the things they can see, such as agency charges or the cost of running the internal team. Far less attention is paid to hidden factors, such as staff churn, time taken for new recruits to start performing or an organisation’s effectiveness at attracting talent that both stays and performs. Yet these unseen costs have a fundamental impact on a business’ bottom line, its performance and the workload facing its HR team.
According to Oleeo’s research, composed from viewpoints of over 100 leading HR heads, finding the right talent is a major concern for UK businesses, with two fifths in a constant battle with people leaving. Almost half (47%) of those questioned expect to lose over a tenth of their workforce in any given year. When this is combined with 14% of HR heads expecting new hires to leave within just 30 days, and 39% estimating it will be within the first six months, the scale of the problem is clear to see. Indeed, 31% expect a ‘long-term’ employee to remain in their role for just 18 months or less, which means excessive amounts of time and money are being spent on recruitment which is failing in the long-term.
Oleeo’s research suggests the recruitment process itself brings with it a plethora of problems. There are now 91 touch points in the average recruitment process making it unbelievably complex, yet HR teams are increasingly being judged on their speed to hire.
On top of this, 72% feel that competition for top talent is greater, or at least the same, as it was three years ago, whilst 94% have a problem with reneging – where people pull out of the process after accepting an offer. In terms of reneging, more than three quarters feel it is as bad, if not worse, when compared to five years ago. The report also suggests that recruiters are struggling to find the talent to fill certain roles, with managerial, STEM and IT positions being the most difficult to recruit for. This means that the hiring process can be long, drawn out and resource-sapping.
Adding another layer of complexity to the situation is the diversity conundrum, which is still an issue for one in five, with 48% actively looking to improve the ethnic diversity of their employees. More than a third are striving to increase gender diversity, with 33% wanting a more diverse workforce in terms of their employees’ education and background.
Considerable delay until new starters deliver.
Even when a candidate is found and becomes an employee, there is a considerable delay until they deliver, and according to Oleeo’s report many never do. 71% of HR professionals say it takes a new starter three months or more to be fully up to speed and producing the same level of work as the person they are replacing, with 14% saying it takes between nine months to a year. Interestingly, almost half believe new employees live up to expectations less than 20% of the time. Click the buttons below to read the research report or talk to us today about how we can assist with your volume recruitment needs.
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Oleeo would be delighted to hear about your talent acquisition needs to see if we can help you. Get in touch today!