Business leaders regret almost half of new hires amid talent shortage

Businesses regret almost half of new hires as the UK’s skills shortage intensifies, a study suggests.

New analysis reveals that 46 per cent of “senior decision makers” believe they have made a bad hire in the past 12 months, with small businesses more likely to feel the impact.

Economic resurgence and appetite for growth over the past 12 months has increased recruitment demand, leading to a talent shortage that triggered poor hiring decisions, according to the research from jobs consultancy Robert Half.

Some 61 per cent of respondents felt that settling for a candidate whose skills did not match the role requirements was the main component in employing a bad hire, closely followed by rushing the hiring process (56 per cent).

Matt Weston, senior managing director for the UK, Ireland, UAE and BeNeLux at Robert Half, said: “Every company, regardless of its size, industry or sector, depends on its employees to achieve its objectives, which means maintaining a productive workforce and hiring skilled talent that adds value to the team. With this in mind, making a bad hire can have serious implications, as the time and expense taken to recruit and onboard a new employee can feel like wasted time and effort when it doesn’t work out.

“Bad hires tend to happen when businesses are unable to take the time required to plan a process, assess candidates and do their due diligence, which leads to rushed decisions and making the wrong compromises, especially in today’s tight market.”

The firm’s research identified the trends, issues and concerns of general managers, chief financial officers and chief information officers across the UK.