Recession drives up cost of recruitment

The rise in job candidates as a result of the recession has actually increased the cost of recruitment for employers, new research suggests.

Nearly half of employers polled by talent firm SHL said they had incurred extra costs while trying to manage the surge in applicants for vacant roles.

In a bid to filter out candidates, a quarter of employers have added more stages to the recruitment process, while 70% have introduced additional methods of selection such as increased entry requirements or more details requested at application stage.

“With unemployment high, it is unsurprising that employers are struggling to deal with the increased number of applicants going for what is likely to be a fewer number of jobs,” said David Leigh, chief executive of SHL.

“However, it is important that they deal with this situation effectively so that it doesn’t end up costing them, both in terms of extra tools and resources, as well as a loss of reputation if they are failing to treat applicants fairly.”

The report found that nearly a fifth of employers admit to not having the time to let candidates know when their application has been received and 17% could not provide detailed feedback to unsuccessful interviewees.

Leigh added: “It can be easy to dismiss applicants who aren’t suitable, but employers must remember that unsuccessful job applicants are also potential customers and ignoring them could impact the bottom line.”

© Crimson Business Ltd. 2010