One in four business leaders report that ineffective talent acquisition is hindering their company's growth, and 34% are uncertain whether they've hired the right candidates, according to recent research by SmartRecruiters, an enterprise hiring software provider.
This survey was conducted with 500 midsize companies in the US, UK, and Australia. The survey was not specific to the heavy duty or service truck industries, but we are sure most of our Service Truck readers would agree.
Despite allocating substantial time and budget to talent acquisition, 51% of executives indicated their current strategies are inadequate, with one-third acknowledging that this deficiency is negatively impacting their brand reputation.
The burden of talent acquisition costs is significant, as 63% of companies allocate at least 40% of their overall HR budget to this area, and nearly 22% exceed 60%.
Furthermore, 44% of business leaders spend over half of their working hours on talent acquisition tasks, which detracts from core business functions.
A notable 62% believe that enhancing their talent acquisition strategies would lead to increased profitability, pointing to lost financial opportunities due to inefficient practices.
The effects of ineffective hiring extend beyond operational challenges and harm essential business outcomes, including growth, reputation, and profitability.
Key negative consequences identified in the research include slower growth (28%), damaged brand reputation (30%), reduced service quality (28%), and diminished sales performance (29%).
The complexity of talent acquisition is also increasing. With a more distributed global workforce, hybrid work models, and heightened competition for talent, 56% of business leaders report that hiring has become significantly more challenging in the past five years. Thirty percent believe that talent acquisition is now the most intricate aspect of their operations.
“The findings underscore the need for HR teams to modernize their talent acquisition strategies to better support business growth and profitability,” said Rebecca Carr, CEO of SmartRecruiters. "Advanced technologies like AI are revolutionizing the talent acquisition process by streamlining inefficiencies and allowing businesses to make smarter, data-driven hiring decisions."
Rebecca added, “Leveraging AI-driven hiring platforms, businesses can enhance decision-making, significantly reduce costs, improve the quality of their hires, and ultimately drive better outcomes. In today's complex hiring landscape, leveraging AI-driven platforms isn't just an advantage our research shows it's a necessity for business to drive growth.”