62% of business leaders say they would be more profitable with better TA strategy

One in four business leaders say their company’s growth is being held back by ineffective talent acquisition, while 34% of business leaders are unsure they’ve hired the right people, according to new research.

Hiring software company SmartRecruiters recently surveyed 500 midsize companies across the UK, US and Australia and found that despite spending the majority of their time and HR budget on talent acquisition, 51% of business leaders said their strategy was not sufficient, and a third admitted this was harming their brand reputation. 

Talent Acquisition: A Resource Drain on Businesses

The research found the cost of talent acquisition is a huge burden on business, with 63% of companies spending at least 40% of their overall HR budget in this area, and almost one in four (22%) spending more than 60% on talent acquisition.

Additionally, a staggering 44% of business leaders report spending more than half of their working time on talent acquisition tasks, diverting attention away from core business operations. In fact, 62% of respondents think their business would be more profitable with a better talent acquisition strategy, highlighting missed opportunities for financial growth as a result of inefficient processes.

Flawed Strategies are Hurting Business Outcomes

The consequences of ineffective talent acquisition extend beyond operational headaches, with it harming critical aspects of business success, such as growth, reputation, and profitability.  The negative impacts of ineffective hiring include slower business growth (28%), damaged brand reputation (30%), reduced service quality (28%), and weaker sales performance (29%).

Complexity is Hindering Talent Acquisition

As the hiring landscape becomes more complex because of factors such as a distributed and global workforce, hybrid and flexible work models and increased competition for talent, 56% of business leaders report that talent acquisition has grown significantly more difficult in the past five years.  30% of respondents admit talent acquisition is the most complex part of their operations.

About SmartRecruiters

SmartRecruiters enables Superhuman Hiring™ by freeing talent acquisition teams from legacy applicant tracking software and empowering them with next-gen AI functionality. SmartRecruiters’ next-generation platform serves as the hiring operating system for 4,000 customers, including Bosch, LinkedIn, and Visa. Companies with business-critical hiring needs turn to SmartRecruiters for best-of-breed functionality, world-class support, and a robust ecosystem of third-party applications and service providers.