Expanding companies can mitigate against ‘breakage’ due to poor hiring decisions through streamlined recruitment strategies. That is the advice of internal talent acquisition specialist, Consult Inhouse, which warns how investors that are aggressively scaling companies often expose themselves to the risk of a weakened workforce through the use of multiple staffing agencies.
The advice comes as figures from the European Commission reveal that less than half of UK enterprises survive their first five years, with separate research from market intelligence firm, CB Insights, indicating that 23% of businesses fail because they don’t have the right team in place – making poor talent management the third most common reason for companies folding behind lack of demand and cash-flow problems.
Steve Lorde, Managing Partner of Consult
“Expanding into new geographic or client markets is generally considered to be the most effective means
“When talent acquisition activity is reactionary as opposed to strategic, managers risk swapping one problem for another. Turning to recruitment agencies to sort your company’s most important resource often involves dealing with people who may just be keen on filling a quota to a set deadline – while charging handsomely for the privilege.
“While this method may ensure that a company has the volume of talent it requires – it is unlikely to deliver the
“However, by developing a dedicated function to manage recruitment, businesses can plan and execute detailed hiring roadmaps to ensure the right roles are filled at the right time. This, in turn, offers the freedom to pipeline talent and guarantee that you are setting the firm up for future success and a return on investment.
“Aggressive – but disordered – hiring activity is unlikely to deliver results. Successful, profitable growth demands a stable operational foundation – and it is only through a highly considered, and well executed, people strategy that this can be put in place. Negative reviews can affect how a candidate’s view opportunities within your