New research from Talogy 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, underscores a skills shortage impacting many of these industries, with 73% of companies feeling pressure to hire quickly.
“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,” says Trevor McGlochlin, managing R&D consultant from Talogy. “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.”
Key takeaways:
· 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.
· 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.
· The Top 4 missing skills commonly lacking in new hires are attention to detail; problem-solving; communication; and advanced technical skills.
