The hidden costs of poor hiring: Balancing speed and quality in 2025

In today’s fast-moving UK job market, businesses face significant pressure to fill roles quickly. With job vacancies still high at nearly 930,000, according to the Office for National Statistics, companies must act swiftly. However, speed alone is not the solution—balancing efficiency with hiring quality is key to long-term success.

The risks of rushed hiring

The immediate impact of unfilled positions can be severe. The latest REC Jobs Outlook shows over four in five UK businesses struggling with staff shortages, leading to increased workloads, declining service standards and mounting pressure to hire quickly. However, hiring the wrong person can be even more costly. REC research highlights that a poor mid-manager hire, earning £42,000, can cost a business over £132,000 when factoring in lost productivity, training and recruitment fees.

Beyond financial losses, poor hiring decisions can disrupt operations and morale. CIPD data reveals that 40% of employers saw increased employee turnover in the past year, with bad hires being a contributing factor. Deloitte’s Human Capital Trends report shows that a poor hire can reduce team productivity by up to 27%, taking a toll on management and employee engagement.

Lessons from key industries

In sectors like professional services and finance, the importance of hiring the right talent is evident. APSCo data indicates that structured hiring methods lead to 52% higher retention rates in professional services. Meanwhile, financial institutions face an average additional cost of £28,000 per bad hire due to compliance issues and retraining, according to the Financial Services Skills Commission.

Businesses that maintain robust hiring processes, even under pressure, report better long-term outcomes. Reed’s Employment Trends report shows companies with structured recruitment practices are 62% more likely to see new hires succeed. McKinsey analysis further reveals that organisations investing 30% more time in recruitment save 68% in total hiring costs over two years due to reduced turnover and higher productivity.

Striking the right balance

To manage vacancies effectively while maintaining hiring quality, companies can adopt several key strategies:

• Develop active talent pools: Building relationships with potential candidates before positions become available reduces time-to-hire without compromising quality.
• Implement robust assessment frameworks: Moving beyond traditional interviews to structured competency-based evaluations ensures better hiring outcomes.
• Create clear competency frameworks: Defining both technical and behavioural competencies helps prevent rushed decisions.
• Invest in internal mobility programmes: Promoting from within ensures faster, more effective hires while preserving institutional knowledge.
• Maintain strong knowledge retention strategies: Documenting key processes and ensuring smooth handovers help sustain operations during hiring transitions.

While temporary solutions can bridge gaps, the CIPD advises using them strategically rather than as a long-term fix. The key is maintaining business momentum while pursuing the right permanent hire.

Looking ahead

Hiring challenges will persist. The British Chambers of Commerce reports that three-quarters of businesses struggle to find suitable candidates, with difficulties expected to increase. However, forward-thinking companies are adapting by building talent communities, investing in internal development and refining assessment methods.

As 2025 unfolds, businesses must balance urgency with hiring quality. The Institute of Directors reports that 65% of boards now track hiring quality metrics, recognising recruitment as a critical business risk. Rushed hiring can be costly, but a measured approach ensures stronger team performance, better retention and long-term business success.