UK skills shortage: Bad hires cost businesses £14,000 each
The skills shortage is an oft-cited obstacle for small firms, but now new research has found each bad hire costs businesses £13,799. Ouch.
The research, by Sandler training, found a shortage of good applications means over half of small businesses admit to having made bad hires. More than a quarter of small businesses blamed their poor judgement, while 11 per cent blamed a rushed recruiting process.
Although making the wrong decision during the recruitment process could cost them dear in the longer term, under a third of small businesses conduct more than three interviews for the position.
A quarter of small businesses will hire a new worker after a single interview. The majority however interview applicants twice before offering them a job.
However, the research was not wholly negative, with small business owners saying they would be happy to reward productive workers.
When asked how much more they would pay a recruit if they could guarantee they will become a valuable member of the team, small business owners said they would up the salary offered by 21 per cent.
Earlier this month, small business confidence in the UK climbed to a four-year high, according to the annual Sage Business Index.
UK businesses were increasingly bullish when it came to their prospects recording a score of 66.29, an increase of 3.74. Turning to the national stage, confidence in the UK economy jumped 7.81 to 61.76, leading French colleagues by 26.69 points.