Short-sighted hiring practices are meaning that U.S companies are shooting themselves in the feet when it comes to attracting talented staff.
A study by recruiter TalentPen found that meeting an employee's personal needs is becoming increasingly critical to job satisfaction and retaining and hiring employees.
Worker loyalty is more precarious than ever, with nearly half – 46 per cent – of new hires leaving their jobs within the first year, and only 49 per cent still in post after two years.
With the baby boomers generation now facing retirement schemes, employers were faced with a lack of skilled workers, meaning younger skilled workers could pick and choose their job options and loyalty was no longer high.
The poll of recruiting and personnel officers found that 59 per cent believed fewer than half of all candidates interviewed were qualified for the job.
More than half felt personality was critical for a good hire, yet more than 80 per cent spent their money on standard criminal and/or reference background checks, while significantly fewer measured personality fit.
"It's no longer enough to find a candidate who is qualified for a position," said Michael Sproul, president of TalentPen.
"Many other factors play into the overall success of a hire; companies need to connect with a candidate as an individual before expecting them to give back. In a sense, retention begins before the hire," he added.
The development of talent pools, active communication with prospects and personality assessments were also vital in this tough, competitive market.
Employers who did not follow this advice would pay a high price, the compant warned, with the cost of turnover at 1.5 times that of salary and some companies reporting a six-fold expenditure above salary when hidden costs such as "chain reaction" turnover and lost productivity are factored in.
