UK businesses are making bad hires for two out of five roles, leading to wasteful spending according to a new report from the Recruitment & Employment Confederation in association with Indeed.

The report shows that 85% of HR decision-makers admit their organisation has made a bad hire, and 33% believe that these mistakes cost their business nothing. However, further figures show that a ‘poor’ hire at mid-manager level with a salary of £42,000 can cost a business more than £132,000. The hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover.

Meanwhile, 39% of employers admit that the interviewing and assessment skills of their staff should be improved.

“Getting recruitment right is even more important during a time of economic uncertainty because businesses need to ensure they’re not wasting money,” REC chief executive Kevin Green said. “Our calculations show that UK businesses are wasting billions every year because of the volume of hiring mistakes being made.”

“This research enables recruiters to explain to their clients why getting recruitment right is so important, and provides a cost/benefit analysis of why it makes sense to use a professional recruitment expert to minimise risk and improve business performance,” Green said.

Bill Richards, UK Managing Director, Indeed, also commented, “Hiring is one of the most important aspects of business growth, but one of the most costly if done wrong. In today’s tight labour market there is a full-blown battle for talent, and employers need help navigating the terrain.”