Most companies that cut staff during the economic downturn may be regretting their decision, according to a recent report by recruitment firm, Hudson.
In a survey of 605 employers, 84 per cent admitted to making too many redundancies and now risk stifling growth of their organisations. With the economy recovering faster than expected, employees have rushed to fill vacant positions but a staggering 45 per cent claimed new staff hired were not up to scratch.
The report detailed 10 per cent of the ICT workforce left their jobs voluntarily and employers said 32 per cent of workforce losses were high-performers. About 73 per cent of employers claim their teams are under-resourced.
Hudson ICT national practice director, Martin Retschko, said raised expectation from employers and inadequate hiring procedures were conducive to the problem.
“No doubt expectation on new hires is higher and they are expected to get up to speed very quickly,” he said. “Secondly, the hiring processes largely being used are focused on skill and experience but less so on whether candidates will be motivated to work in a particular context.”
With a skills shortage looming, employers are having a hard time filling vacancies unless they compromise their expectations or engage in better hiring procedures, Retschko said.
“If employers don’t do something about the situation they risk disengaging their staff by not resourcing teams effectively,” he said.
“The outcome can be failure to deliver on projects and another outcome is not being able to compete in the marketplace in delivering the growth in-line with the broader market.”
Companies also have to consider moves to retain staff. The report surveyed 1690 employees, 97 per cent of whom want to move into a new job within the next 18 months.
Sixty-four per cent of employees affirmed career considerations and financial motivators are what they are looking for in a job.