UK Companies Take Recruitment Measurement Too Lightly

Press release date: 1-Sep-2006

Unlike practically every other business discipline, recruitment seems to have escaped stringent performance measurement, despite its potentially huge impact on corporate success.

Executives Online’s latest research, Executive Talent 2006, an in depth analysis of the trends and issues driving the UK executive recruitment market, suggests that organisations are not testing the performance of recruitment in a very scientific way, if indeed they are testing it at all.

Almost 10% of companies have no formal measurement of whether their recruitment is successful and nearly half (46%) are using rather arbitrary methods which completely fail to address the real issues.

19% are measuring the quality of the candidates coming forward, 17% the number of applicants and 10% speed of process, none of which gives any indication of whether the successful candidate meets objectives and performs for the organization, the real and crucial test of recruitment.

Only a minority (27%) are measuring what matters - the quality of candidate hired - to determine whether their recruitment process is delivering.

It’s an issue that astounds Gordon Steele – former Sales and Marketing Director of the Post Office:

"Whilst the vast majority of companies automatically have procedures in place to carefully monitor the achievement of sales, marketing and IT functions, for instance, it is surprising how very little attention is paid to measuring recruitment, given the relatively large budgets involved."

According to Executives Online’s study of over 100 major companies, it typically costs a company £30,000 to hire a senior executive. And this figure doesn’t take into account the costs – in terms of wasted salary payments and loss of profits due to underperformance – if an executive fails to deliver.

"Companies wouldn’t dream of ploughing thousands into an advertising campaign and then not bothering to check just how effective it has been,’ says Norrie Johnston, Managing Director of Executives Online. ‘Yet in effect this is what many they are doing with recruitment. It’s possible to draw two conclusions from our study. Either recruitment is considered too nebulous to measure, or there is a general apathy in the market. Yet companies are missing a trick by taking recruitment lightly. Each executive recruitment decision can have a tremendous impact, presenting great opportunities if the selection process is successful and the new employee brings in fresh ideas, drive and innovation, or huge potential problems if they don’t work out."

Norrie Johnston also believes measurement is vital – and relatively simple.

"Companies cannot afford painful recruitment mistakes and must ensure they have not compromised a key position by recruiting a candidate who is failing to deliver. They need to be absolutely certain they have the right senior manager or director for the job. It’s focus that is needed from the start, as soon as job descriptions are drafted, CV’s submitted and candidates invited for interview."

He believes the successful candidate should then be monitored three months and six months into their new position.

"We advise our clients to forget the four-page job description; instead focus on key tasks and deliverables. It would then be far easier to measure success by ensuring those tasks and objectives are being met."

The independent study involved interviews with 102 HR managers and senior managers all of whom recruit senior personnel. They work for UK organisations across a range of industries and with turnover in excess of £25 million. To request a copy of Executive Talent 2006 or to find out more about Executives Online’s services contact 01962 829 705 or visit www.ExecutivesOnline.co.uk