Cost of ‘bad hires’ impacting US industrial sector productivity and profitability, says new Talogy research
- One in five (21%) organizations have experienced an increase in safety incidents as a result of a poor hire
- 73% say they feel under pressure to hire quickly, resulting in rushed recruitment decisions
- Hirers increasingly demanding transferable skills such as attention to detail, problem-solving and communication, as well as technical skills
- Talogy launches I-Grade suite of solutions to help industrial organizations screen and select good candidates based on job-specific and transferable skills
New research has found that decreased productivity, poor work quality and an increase in safety incidents are some of the costly consequences of hiring the wrong people for entry-level roles in the industrial sector.
The study – ‘Quality hires, quality output: Smart talent strategies for industrial hiring’ – investigated the challenges of hiring employees with the right mix of both technical and transferable skills to fulfil entry-level roles.
It surveyed 855 industrial hiring professionals in sectors such as manufacturing, construction, logistics, distribution, transportation, energy, warehousing, utilities, automotive and engineering.
With a skills shortage impacting many of these industries, the report found that a significant proportion of hirers – 73% – felt under pressure to hire quickly, but were seeing the consequences of rushed recruitment decisions.
More than half (51%) of respondents reported increased costs due to rehiring or training, particularly where transferable skills were lacking, while nearly two thirds (63%) saw decreased productivity and 56% reported poor work quality.
Most concerningly, one in five (21%) said their organization had experienced an increase in safety incidents as a result of a poor hire.
As a result, 85% of survey respondents believe that hiring for quality and skill readiness is becoming increasingly critical, particularly with advancements in technology impacting multiple industrial sectors.
Trevor McGlochlin, Managing R&D Consultant from Talogy, commented: “In the industrial labor market, competition for entry-level talent remains high, and finding the right people to fulfil frontline roles is increasingly challenging. It is therefore not surprising that many employers rush to make quick hiring decisions, without potentially going through the right process.
“However, this research reveals that prioritizing speed of hire over quality can be hugely detrimental. These are often sectors where employee performance directly impacts safety, productivity, and efficiency, and the fact that many of our respondents could directly link safety incidents to a poor hire is very worrying.
“This is why quality is so important. A strong hire brings the right technical and transferable skills, as well as mindset, which reduces errors, minimizes downtime, and supports continuous improvement. This research shows the bottom-line impact of poor hires, which can significantly hurt output and profitability.”
The top four missing skills
Of the skills most commonly lacking in new hires, the research revealed that the top four were:
- attention to detail
- problem-solving
- communication
- advanced technical skills.
This showcases that transferable skills, as well as job-specific skills, are becoming an increasingly important factor in recruitment success.
Trevor McGlochlin continues: “Industrial jobs are often shift-based, physically demanding, and require consistency, teamwork, and safety-mindedness. So, while a candidate may meet the basic technical requirements, if they don’t have qualities such as reliability, resilience, and attention to detail, candidates will be ABLE to do the job but are less likely to actually DO the job.
‘With technology changing so rapidly, recruiting people who have both technical and transferable skills is clearly a priority. These are skills that not only serve them well in their specific role but demonstrate future capabilities and agility.”
Survey from Talogy
