HR professionals are finding it tough to hire capable employees, with one in 10 new recruits regarded as a ‘poor hiring decision’ according to research by Robert Half UK.

The recruitment specialists’ new report, Management Insights: How to avoid common hiring mistakes, found that the costs associated with bad hires can have a significant impact on a business, with HR directors reporting that the main problems include a loss of productivity (52%), a reduction in staff morale (30%) and substantial financial ramifications from salaries, training and loss of performance.

Phil Sheridan, UK Managing Director at Robert Half, said:

“In today’s business environment, competition for top talent is high and the job market is changing at a rapid pace.  It is therefore essential that every employee demonstrates measurable results towards a company’s growth and strategic goals.

“To minimise the risk of a bad hire, employers need to continuously evolve their recruiting processes, ensuring they have the right people and practices in place to identify and secure the most sought after candidates. Businesses should also ensure they work closely with the HR department and a specialised recruiter to establish a robust recruitment strategy. “

In the study of over 200 HR executives 70 percent revealed that they had hired someone who did not meet their expectations, and 91 percent reported identifying skilled workers a challenge.

Some of the difficulties of hiring seem to stem from the amount of talent available. Over a third (35%) of HR directors said that there is a lack of niche or technical experts, while 30 percent felt with general demand outweighs supply and 22 percent reported a lack of commercial business skills.

Just 13 percent of HR executives cited slowed hiring during the recession resulting in a lack of candidates with the right skills.

Robert Half offers the following suggestions when recruiting:

Don’t Do
1. Go it alone Consult colleagues on attributes and competencies for the open role, and work with a specialised recruitment consultancy to find the best candidates.
2. Neglect the job description Providing detail to ‘sell’ the job will result in better applications. Details such as team size, reporting lines, corporate values and training opportunities will all prove attractive to potential candidates.
3. Think the Internet has all the answers Cultivate a talent pipeline by personally reaching out to your network and recruiting sources. Online tools can be valuable, but personal interaction is the most important aspect of the hiring process.
4. Take too long Extend an offer once you identify your top candidate. Companies that don’t move quickly risk losing good people to other opportunities.
5. Offer a low salary Offer a compensation package that, at a minimum, meets the market standard. Stay current on prevailing trends by reviewing resources such as the Robert Half 2015 Salary Guide.
6. Fail to differentiate between must-have and nice-to-have candidate attributes Identify the skills that are mandatory and those that can be developed. The goal is to hire the person who is the best match for the job and your work environment.