View more on these topics

Firms fail to gauge recruitment value

Many companies are increasing their recruitment expenditure without putting checks in place to ensure that they are getting value for money, according to Cranfield School of Management.

Its latest recruitment confidence index reveals that 84 per cent of companies expect their recruitment expenditure to increase or remain the same over the next six months.

Sixty-six per cent of organisations assess the success of their recruitment process but only around 25 per cent of them work out a cost per hire, which Cranfield says is the true measure of value for money.

The quarterly survey, which interviewed 557 senior managers around the UK, looks at changes in recruitment activity, business conditions, recruitment methods, skills shortages, staff turnover and pay.

Cranfield says it is not surprised by the findings of the survey, which is sponsored by online recruitment specialists Konetic.

It found that companies tend to buy recruitment software and then try to change their internal processes to match the way their new systems work, creating friction within the company.

Konetic recommends setting practical business objectives such as direct cost savings or producing a preferred supplier list of recruitment or executive search agencies.

Cranfield School of Management research fellow Dr Emma Parry says: “These results paint a worrying picture of organisations throwing money at recruitment without any idea if they are receiving a suitable return on their investment.

“This suggests that when recruitment is unsuccessful, recruiters just spend more and more on the same processes rather than systematically assessing the success – or failure – of the methods they are using and making changes accordingly.”

Recommended

Gambhir leaves JP Morgan after a decade

Fund manager Ajay Gambhir has left JPMorgan after 10 years with the firm, with Jonathan Ingram taking his place as head of the European higher alpha team.

Godiva makes six key promises to brokers

Godiva Mortgages has made six key pledges to brokers ahead of its launch tomorrow.It says there will be no overhanging early redemption charges, no differential pricing between channels, all products are available to existing borrowers, all direct mortgage products will be available to intermediaries, there will be no cross-selling to intermediaries’ clients and intermediaries will […]

Fund managers Gored for short-term focus

Former US vice-president Al Gore has hit out at company bosses and fund managers for damaging the environment by focusing on short-term goals.Speaking at the National Association of Pensions Funds’ annual investment conference in Edinburgh, Gore warned that companies’ obsession with meeting short-term profit targets rather than taking a longer term view, was hampering work […]

Tax break urged for the NPSS

Pension Funds is calling for tax incentives to help employers adjust to the additional £2bn a year costs of auto-enrolment. In its response to the consultation on the second Pensions White Paper, the NAPF has proposed a ³good pension fiscal incentive² which would provide employers offering highvalue contributions a small rebate during the three year […]

thumbnail

What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com