Recruiting new staff is too expensive

-

SNP hit out at Labour over council redundanciesRecruiting new employees takes too long and is too costly according to a new survey from Maximus UK and the British Chambers of Commerce (BCC).

Over 80% of the companies that responded employ fewer than 100 staff and identified recruitment as a great challenge in managing their workforce.

The two-week survey was conducted amongst over 500 SMEs in all sectors and was carried out following the unveiling of the Government’s Work Programme recently, a scheme designed to match job seekers with the appropriate job in order to obtain sustainable employment and gain long-term self-sufficiency. Maximus is involved in delivering the Work Programme.

Click image for related training information
Over 40% of companies responding to the survey estimated the cost of recruiting a new employee is more than £2,000 and for more than half (53%) of the businesses, the business owner is responsible for recruitment – less than a quarter of the businesses said they have personnel departments to handle staffing.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Only 3% of the businesses regularly use a recruitment agency. Just over half use agencies occasionally, while 46% said they would never use a staffing agency. Two-thirds of respondents cited high costs as a reason for not using external agencies and 11% indicated that the use of staffing agencies is too time consuming.

Online job boards fare only slightly better. Almost one-fifth of respondents always use online job boards, 43% sometimes use a job board, and 39% said they never would. Nearly half of all companies responding to the survey indicated that the CVs they receive via online job boards do not match the requirements of their job openings while 20% indicated that the use of job boards is too time consuming.

David Riches, Director of Operations at the British Chambers of Commerce. “As the Maximus survey shows, the cost and time involved in hiring new staff can be difficult for small- and medium-sized firms. There are currently almost 2.5 million unemployed individuals in the UK, including over one million young people, so we must make it easier for companies to recruit.”

Latest news

Sustainable business starts with people, not HR policies

Why long-term success depends on supporting employees, not just meeting ESG targets, with practical steps for leaders to build healthier organisations.

Hiring steadies but Gulf crisis threatens recovery in UK jobs market

UK hiring shows signs of stabilising, but rising global uncertainty linked to the Gulf crisis is weighing on employer confidence and delaying recovery.

Women ‘face career setback’ risk with flexible working

Female staff using remote or reduced-hour arrangements more likely to move into lower-status roles, raising concerns about bias in career progression.

Jo Kansagra: Make work benefits work for Gen Z

Gen Z employees are entering the workforce at full steam, and yet many workplace benefits schemes are firmly stuck in the past.
- Advertisement -

Union access plans risk straining workplace relations, CIPD warns

Proposed rules on workplace access raise concerns about employer readiness and operational strain.

Petra Wilton on managers struggling with new workplace laws

“Managers are not being given the tools they need to fully understand how the rules of the workplace are changing.”

Must read

5 ways to promote a better work-life balance  

Many employees are living such a competitive fast paced lifestyle that they often do not take a moment to step back and realise how their lives outside work are being affected.

Ciara Mulkerrins: Stress – the healthier way down

Stress. A familiar term we hear a lot. Most of us know that stress makes life that bit harder to handle and continued stress weakens the mind and body and wears down our ability to thrive. In fact, we often find ourselves just about surviving, not enjoying life much at all. Perhaps feeling like we’re just steps away from the long drop to hair-ripping, rubber-walled madness… Or is that just Marketeers?
- Advertisement -

You might also likeRELATED
Recommended to you