Research highlights cost and challenge of securing candidates who deliver.
The recruitment revolving door.
Research from Oleeo says two fifths of UK businesses are in a constant battle with staff leaving, whilst 47 per cent expect to lose over a tenth of their work force in any given year. Not only this, but the UK’s ‘recruitment revolving door’ means 14 per cent of HR heads expect new hires to leave within just 30 days, and 39 per cent are accustomed to new employees leaving within six months of accepting a role.
“The scale of the problem is clear to see,” notes Charles Hipps, CEO and founder at Oleeo. “In an age where HR teams are fighting a myriad of challenges in a bid to find people who are right for both their roles and organisations, staff churn is a constant thorn in their side.
“Our data shows that 31 per cent of UK recruiters classify a long-term employee as someone who remains in their role for just 18 months or less, meaning businesses are wasting excessive amounts of time and money on recruitment which is failing in the long-term. This has a fundamental impact on a company’s bottom line, its performance and the workload facing its HR team.”
Oleeo’s ‘See the Unseen’ research report, which analysed the responses of more than 100 leading HR heads, suggests that even when a candidate is found and successfully recruited, there is a considerable delay until they deliver, with many never actually reaching the desired level. 71 per cent of HR professionals say it takes a new starter three months or more to be fully up to speed, with 14 per cent saying it takes between nine months to a year. Interestingly, almost half believe new employees live up to expectations less than 20 per cent of the time. Having staff underperforming for such a significant period of time inevitably impacts colleagues, and the company’s bottom line.
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.
Those questioned see technology as the answer, with many of the more proactive companies feeling that it helps them find top talent faster, keep candidates more engaged and identify those most likely to succeed and stay. 41 per cent think automated decision-making will speed up their time to hire, and one third feel it will make the decision process more consistent. 39 per cent feel AI will reduce the risk of missing out on ‘hidden gems’, others believe it will be key in removing bias and predicting the likelihood of someone accepting a role.
Hipps concludes: “As the research shows, the UK’s ‘recruitment revolving door’ is not only holding UK businesses back, but also costing them a fortune – far more than we initially imagined. With greater volumes and an increased need for diverse workforces, if people don’t embrace technology things are never going to get better. Technology allows HR teams to have both quality and quantity when it comes to searching for top talent. With the right systems in place, they can effectively and quickly pick their way through large amounts of applicants, finding just the right people that are going to be successful and stay.”