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The latest news, trends and information to help you with your recruiting efforts.

Posted May 10, 2013 by

Cost to Employer of Bad Hire Exceeds $50,000

Matt Ferguson, CEO of Careerbuilder

Matt Ferguson, CEO of Careerbuilder

A new study shows that hiring the wrong person can have serious implications for companies. More than half of employers in each of the ten largest world economies said that a bad hire (someone who turned out not to be a good fit for the job or did not perform it well) has negatively impacted their business, pointing to a significant loss in revenue or productivity or challenges with employee morale and client relations.

For example, among those reporting having had a bad hire, 27 percent of U.S. employers reported a single bad hire cost more than $50,000. In the Eurozone, bad hires were most expensive in Germany, with 29 percent reporting costs of 50,000 euros ($65,231) or more. In the U.K., 27 percent of companies say bad hire costs more than 50,000 British pounds. Three in ten Indian employers (29 percent) reported the average bad hire cost more than 2 million Indian rupees ($37,150), and nearly half of surveyed employers in China (48 percent) reported costs exceeding 300,000 CNY ($48,734). (more…)

Posted March 20, 2013 by

41% of Employers Suffering Loss of Productivity Due to Difficulty Hiring for I.T., Sales, Engineering, Other Positions

Matt Ferguson, CEO of Careerbuilder

Matt Ferguson, CEO of Careerbuilder

The growing deficit of skilled labor needed to fill in-demand jobs is causing a drag on employers across the globe. A significant number of employers in the ten largest world economies said that extended job vacancies have resulted in lower revenue and productivity and the inability to grow their businesses. Employers in China were the most likely to report having open positions they cannot fill and corresponding negative effects on their company performance. Russia houses the largest percentage of employers reporting a revenue shortfall tied to extended job vacancies while the U.S. is among those most likely to report a productivity loss. Japan ranked high among those who said the inability to find skilled talent has impeded expansion of their businesses.

The global CareerBuilder survey, conducted online by Harris Interactive© from November 1 to November 30, 2012, included more than 6,000 hiring managers and human resource professionals in countries with the largest gross domestic product.

“The inability to fill high skill jobs can have an adverse ripple effect, hindering the creation of lower-skilled positions, company performance and economic expansion,” said Matt Ferguson, CEO of CareerBuilder. “Major world economies are feeling the effects of this in technology, healthcare, production and other key areas. The study underlines how critical it is for the government, private sector and educational institutions to work together to prepare and reskill workers for opportunities that can help move the needle on employment and economic growth.” (more…)