Three-quarters (74%) of global companies are compromising candidate quality to fill positions faster as a result of economic pressures, according to the latest survey by Thomas International (Thomas), a global provider of talent assessment platform.
The Talent Time Bomb: The Countdown to Transforming Your Talent Culture report surveyed more than 900 HR professionals worldwide and found that while 81% felt pressure for recruits to achieve optimal productivity faster, more three-quarters (76%) believe hiring too quickly leads to an inappropriate fit. But with low productivity costing companies an estimated $1.8 trillion a year, organizations can’t afford to hire the wrong people.
The survey comes as HR professionals are experiencing an ever-deepening skills crisis, with nearly half (48%) citing that skills shortages have increased as a result of the pandemic – 43% say they are experiencing a soft skills shortage, in compared to just 17% for difficult skills.
However, while soft and hard skills are valued equally, the report shows that there is a clear link between placing greater value on soft skills and the ability to bring new hires to optimal productivity sooner.
Research proves that last year, average productivity time was 7.1 weeks, rising to 7.92 weeks for those who value hard skills the most, but dropping to 6.61 weeks for those who value soft skills the most. skills.
“Prioritizing speed costs money down the road, offers inferior candidates, reduces team fit, and even ignores those with potential. By moving quickly, companies are ignoring the impact on time to productivity and long-term retention.” comments Luke McKeever, CEO of Thomas.
When asked what the three most needed skills are in the organization in the coming months, 41% of HR professionals cited being adaptable to change, rising to 43% when filtered by the group that values hard skills the most.
However, when those who value soft skills the most, this drops to just 25% – indicating that those who highly value soft skills are already benefiting from having more agile and adaptable workforces.
McKeever continues, “We’re in an economic downturn, and it’s only going to get worse for HR professionals, who will face even greater pressure to bring employees up to full productivity faster, limiting the costs associated with failed hires.
“However, since the rush to fill roles correlates with a greater chance of a failed hire, prioritizing speed for productivity over the time of hire is the smartest and most cost-effective way for HR professionals to support their employees. Business.”