Poor Recruitment costs the UK £5bn per year

This article by The Recruitment Consultant makes interesting reading!

"Poor recruitment practices are costing the UK economy £5bn per year according to new research.

The study from people assessment company Talent Q found that many companies are routinely making poor decisions when hiring employees resulting in a fall off in productivity equivalent to £2,400 a year for every worker who is placed into a role without being assessed effectively – adding up to £5 billion bill for the whole country .

The company says that 44 per cent of employees were not selected using personality assessment and 24 per cent were not selected using aptitude tests, despite data which shows this is the most effective way to recruit.

Steve O’Dell, chief executive of Talent Q, commented: “Organisations are often employing people based on little more than gut feel, even though it’s by far the worst recruitment technique. All the studies show that if employees use assessment to check whether someone has the right aptitude and personality traits, they get far better people and much better productivity.

“In the UK, our productivity per hour worked lags around 20 per cent behind the USA and Germany. If organisations made the right hires it would be a significant way of helping ensure the country doesn’t fall behind its global competitors” "

Although there has to be an element of gut instinct involved, as I wouldn't make an important decision based on a set of test results.