‘Thomas International’ conducted research with 500 HR and Talent Management professionals.
Here are the quicknotes version of the findings.
Confidence in recruitment is low
1. 50:50 chance for new hires
A survey of 500 businesses revealed that over half (57%) of hires are not working out, according to the people who made the hire. This alarming statistic indicates that traditional recruitment is potentially broken.
2. It’s the door for one in four
A quarter of these bad hires have left the business or are not working out, while a further third (32%) are struggling with some elements of their role.
3. Risk is ramping up
After a slow year, 64% of businesses are increasing their recruitment activity again. Making the right hires is vital, yet as recruitment activity increases, so does the risk of making a poor hire. PricewaterhouseCoopers estimates that direct and indirect costs of a bad hire range from between 50% and 150% of the employee’s annual salary.
4. Remote working remains
Whilst 44% of recruiters still cite remote working as the biggest driver of transformation in the sector, it is less influential for most. This suggests that a level of adaptation to remote working may already have been achieved.
5. Buffeted by Brexit
Four in ten recruiters are concerned about the impact of Brexit and say that the disruption caused, continues to be a major influence on their hiring and skills acquisition activity.
6. Differentiation difficulties
Despite the disruption, the primary challenge recruiters say they face is distinguishing between candidates (88%). Just 21% of hiring managers think that CVs are a strong indicator of the future performance of a hire.
7. Quality is the Priority
Recruiters’ top priority over the next 12 months is improving the quality of hires. 38% of survey respondents say they prioritise hire quality over any other consideration in the hiring process, including speed, cost and candidate experience.
A new world of recruitment
8. Culprits: complexity and culture fit
According to recruiters, the root cause of frequent failed hires is a combination of complicated, drawn-out processes (31%), poor candidate experience (31%) and an inability to test culture fit (31%).
9. Evolve or die
99% of recruiters think that improving the quality of recruitment systems and processes is important in the current environment. This highlights an overwhelming need for recruitment systems to evolve in order to bridge the trust gap that is currently undermining them.
10. Tech for trust
The majority of recruiters (80%) believe that technology will play a key role in the evolution of recruitment processes. In contrast with ‘gut-feel’, tools like predictive hiring and psychometric testing are considered to offer accurate, objective information that can help to close the trust gap.
Want to dive deeper? Download the full ‘Mind the Trust Gap’ 2021 research report from thomas.