MENLO PARK, Calif.,
March 21, 2017 /PRNewswire/
-- Building a successful business depends largely on hiring
the right people. But as small and midsize firms expand, how strong
is their hiring process? A new survey from global staffing firm
Robert Half aimed to find out. Among the results:
- Nearly half (49 percent) said most hiring managers
underestimate the complexity of the hiring process.
- Sixty-five percent cited problems with their hiring
process.
- A strong majority (81 percent) said their companies have
made a bad hire.
View an infographic of the survey findings.
Robert Half's Small and Midsize Business Hiring survey explores
perspectives of business owners and managers related to a variety
of hiring issues. More than 1,000 business owners and human
resources managers of United
States firms ranging from one to 499 employees were surveyed
by an independent research firm to gather relevant data.
Several factors complicate hiring in smaller organizations,
according to Paul McDonald, senior
executive director at Robert Half. "Some firms lack dedicated
recruiting staff or a human resources function altogether," he
said. "Multiple demands on a business owner's time also can pull
attention away from recruiting and cause it to fall to the last
priority."
Numerous Costs of a Bad Hire
Business owners noted
many negative impacts of making the wrong hire:
- On average, respondents estimated 45 hours were wasted
on hiring and onboarding people who ultimately did not work out.
- More than half (53 percent) reported increased stress on
the team that worked with the bad hire.
- One in five (20 percent) cited decreased confidence in
the managers' ability to make good hiring decisions.
Delays to Correct Mistakes
The research also found
that while a bad hire could be identified rather quickly,
correcting the mistake took longer.
- Fifty-eight percent of small business owners said it
took less than a month to realize they made a bad hiring decision;
however, it took more than twice that time on average (8.8
weeks) to let the person go.
- Nearly five more weeks passed before a replacement
started working, with 68 percent of businesses putting the
workload on existing staff during this time.
Minimizing the Risks and Costs of a Bad Hire
The
survey results indicate several ways businesses can address
deficiencies with their hiring process and minimize risks of making
a bad hire.
- Branch out – Fifty-eight percent of respondents
said the best new hires come from referrals, including employees,
friends, recruiters and others in their network. Go beyond posting
job openings and hoping the right person will apply. Among the
respondents who use recruiters, 76 percent said a recruiter
was able to find a candidate they wouldn't have found on their
own.
- Delegate – Forty-five percent of owners noted
that the most challenging hiring step is evaluating candidates
based on their skills and potential fit; 26 percent admit it
takes them too long to fill open roles. Delegating these duties to
an outside resource can cut hiring timelines and save money:
Forty-three percent said working with a recruiter saved the
firm time because the recruiter did most of the work; 36
percent also said they saved money by finding someone more
quickly.
- Get a guarantee – Thirty-two percent of businesses
working with recruiters said they do so for the service guarantee.
Ask recruiters about their placement success rates and what they
offer if a new hire doesn't stick.
- Bridge the gap – Only 18 percent of respondents
said they brought in temporary professionals to assist with heavy
workloads while replacing bad hires. The right person can lift the
burden from existing staff, keep projects moving and may be
evaluated on the job for a potential full-time role.
About Robert Half
Founded in 1948, Robert Half is the world's first and largest
specialized staffing firm. The company has 325 staffing locations
worldwide and offers online job search services on its divisional
websites, all of which can be accessed at roberthalf.com.
For career and hiring advice, visit the Robert Half blog at
roberthalf.com/blog.
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SOURCE Robert Half