Sabby Gill, CEO at Thomas International
The pandemic has been challenging for everyone, with thousands of business owners feeling the full force of countless restrictions and lockdowns in their finances.
Now, as the economy looks to recover and government support schemes such as furlough come to an end, businesses up and down the country are streamlining costly processes, reviewing their resources and cutting their losses where they can. However, recruitment – one of the most important processes for business success – is being overlooked and ignored.
Currently, businesses are spending thousands of pounds on ineffective recruitment methods. In fact, the average cost of a new hire in the UK is £3,000, but according to our latest research, over half of new hires aren’t working out. Clearly, business leaders need to act fast if they are to drive success in a post-Covid world.
The hiring gap
British businesses can’t stick their heads in the sand much longer. An honest conversation about what tools HR leaders give managers, and how they’re used – or not used – to make better hiring decisions is needed immediately. Businesses can’t afford – literally – to flip a coin and hope their existing recruitment practices will lead to great hires.
HR leaders must recognise that the future of work is already here, and hybrid working is the new status quo. Talent and teams are increasingly dispersed across the globe, which means that the way businesses recruit must change. By changing the way they approach recruitment, businesses can adapt to the new normal, make strategic best-fit hires, save on resources and ultimately, thrive.
Alarmingly there is a growing gap between the best laid plans of HR teams and what hiring managers are doing in practice – HR-led hiring practices are falling down where the “rubber meets the road”. And hiring managers are falling back on costly, traditional methods of making recruitment decisions.
Bridging the gap with predictive hiring tools
The current situation highlights the fragility of a homogenised view of human resources as workers respond in diverse ways to the changing working landscape. For example, more introverted individuals may prefer working remotely, while others may shine in the social spotlight, preferring the office. Traditional methods of hiring – such as CVs and staged interviews – don’t highlight these characteristics, nor do they recognise the psychological differences between candidates for role and organisational suitability.
Considering these factors, tools that enable predictive hiring prove invaluable. They can transform the performance of organisations around the world through smarter people decisions, looking beyond surface skills and experience to identify true potential and capabilities. Combining technology, psychology and data, such tools elucidate the complex nature of human behaviour, aptitude and personality. The ability to identify and harness latent potential in individuals and teams puts businesses in a strong position to innovate and succeed in this new world of work.
Unlock the power of people
The world of work has changed, and the way organisations recruit must evolve with it. Too many businesses have lost money – and talent – to ineffective recruitment strategies. It’s critical HR leaders make a step change and make the right hire the first-time, every time. Otherwise they risk falling behind.
Predictive hiring enables businesses to identify traits of teams and individuals that best align with their business model, enabling them to function properly and innovate successfully. Ultimately, these vital tools hold the potential to close the hiring gap and help businesses move forward with confidence.