New research from SEEK indicates that poor recruitment choices are placing a significant financial burden on small and medium-sized businesses, with the annual cost estimated at around $911 million.
The study found that employing the wrong candidate can cost businesses approximately $20,000 once factors such as lost productivity, recruitment expenses, onboarding, and training replacements are taken into account.
SEEK New Zealand manager Rob Clark said around 20 percent of hires fail to meet expectations, often because employers rush the recruitment process or fail to clearly define roles from the outset. He said detailed job advertisements that accurately outline responsibilities, salary ranges, and workplace benefits can help attract stronger candidates, while emerging AI-powered recruitment tools are increasingly being used to screen applicants, verify credentials, and identify suitable talent.
Clark also noted that persistent skills shortages, particularly in the technology sector, are forcing some employers to settle for less-qualified candidates in order to fill vacancies.
Image credit: Afif Ramdhasuma
