SMEs waste £69 million on recruitment per year

Small businesses in the UK waste almost £70 million on bad recruitment every year, according to new research.

An investigation by jobsite.co.uk discovered that 22% of new staff members (55,000) leave their post within six months.

The sector invests around £300 million annually into taking on 250,000 new employees, but many small firms have to hire for the same position twice, at an average cost of £1,200 every time.

Keith Potts, managing director of jobsite.co.uk, said: "Hiring the wrong people is costly and can be seriously detrimental to the productivity - and even the future - of small and medium companies, particularly in the current economic climate."

He added that smaller enterprises should consider working with organisations that can offer them assistance with their recruitment practices.

In other news, a recent survey by the Forum for Private Business revealed that more firms were concerned over changes to tax and regulations than about the impact of the credit crunch.