04 Nov 2014
Professional services network PwC has released a report of 2,600 global businesses, showing that external recruitment is now at a rate of 12.8%, up from 10.9% in 2009.
But it warns that this ‘rush to recruit’ has caused the average revenue gain per employee to fall to £108,000. In 2010 this figure was £139,000, which the report says was largely due to staff reductions in the wake of the financial crisis.
Anthony Bruce, HR and Workforce Analytics Leader at PwC, said: ‘Too many organisations are simply following the pack and recruiting because everyone else is, rather than because they need to. This will ultimately stifle workforce productivity levels.
‘Businesses should be making full use of the tools and information available to better manage their workforce’.
He added that organisations looking to hire should ‘make better use of analytics to assess and predict what skills they actually need and where, rather than just recruiting’.
The report recommends that businesses consider their current workforce, and maintain the financial discipline they showed during the economic downturn. It said the use of big data to predict future needs, and hiring appropriately, is key to increasing business performance.
The full report can be found here.