Talent mismatch costs billions in avoidable recruitment costs

Talent is the top factor in competitive success for a business and a new study from PricewaterhouseCoopers, commissioned by LinkedIn, has revealed that not having the right people in the right jobs costs the global economy billions in avoidable recruitment costs. The study examined talent adaptability in eleven countries and looked at how social media tools are aiding the recruitment process. 

Key data

63% of global CEOs worry about the availability of key skills.

39% of UK employers say they are struggling to recruit employees with the advanced technical skills they need.

69% of global human resources developers said that online professional networks have improved their ability to fill vacancies more quickly and efficiently.

85% say that social media recruitment tools have changed the way they interact with prospective candidates.

$130 billion in additional global productivity could be gained if there was a better talent fit between employer and employee.

Additional facts

• Eleven countries were analysed: The Netherlands, the UK, Canada, Singapore, US, Australia, France, Germany, Brazil, India and China, with the Netherlands being the best in terms of talent adaptability and China the worst.

• In the UK, a mismatch of talent and job opportunity is costing the country $1.44 billion in lost productivity and $0.43 billion in avoidable recruitment costs.

• Employers with a strong brand and internet presence are more likely to attract the right candidate for them, as well have higher acceptance rates and fewer short-term resignations.

• The better employers and employees are at adapting to changing circumstances and aligning their skills with opportunities, the more productive a business will become.

The study, Adapt to survive, analysed millions of interactions from LinkedIn’s network of 277 million professionals, as well as information from PricewaterhouseCoopers’ Saratoga database, to figure out which countries are better at aligning talent with opportunity. More information about the study and its results can be found here.

{jathumbnail off}