Recruitment agencies put on notice
Australian recruitment agencies are contributing to a massive slice of avoidable costs during the hiring process, according to a recent study.
The Adapt to Survive study, a collaboration between PricewaterhouseCoopers (PwC) and professional networking site LinkedIn, analysed recruitment data from 11 OECD countries and found Australia was one of the most wasteful when comparing costs.
The research revealed Australian businesses were poor at matching talent with job opportunities and this cost the country the chance to generate $3.8 billion of additional productivity.
Businesses that have installed recruitment software have always held an advantage over those that didn't and this was clear in the next startling revelation.
Businesses that don't have good software take longer to find the perfect candidate, on average, and this can increase the chance they will pick the wrong person for the job available. There's then a greater likelihood of that person will leave the post after a short time and this is costs businesses big dollars.
The research estimated that this poor talent alignment was costing Australian companies in excess of $385 million. The total among all 11 countries was more than $20 billion, which shows this issue isn't isolated to Australia.
Director for LinkedIn Talent Solutions in Australia and New Zealand Tony Ward said both businesses and the government need to come together make sure the right people wit the the desired skills find the jobs they need.
"Furthermore, with 43 per cent of Australia's CEOs intending to increase their headcount over the next year, there is a real opportunity for professionals to differentiate their individual brand via online networks," he said.
"Australian businesses with a strong online presence attract better candidates and retain new hires for longer, lowering the rate of short-term resignations and decreasing associated costs."
For Australian recruitment agencies that want to hire the most qualified candidates, there is software available that can streamline services and match the best person to your job opening.