New research shows that a significant number of US employers are resorting to hiring underqualified workers as they struggle with tight budgets.
Robert Walters research shows that almost three quarters (71%) of employers have hired candidates who do not have the required qualifications or experience due to financial constraints.
Furthermore, about half (48%) see budget constraints as the biggest challenge in recruiting the right talent.
Tight budgets force difficult choices
US recruiters also noted a lack of qualified candidates (37%) and fierce competition from rival companies (12%) as concerns about hiring the right talent. However, persistent budget shortfalls mean many companies are unable to attract the right employees in the first place – with an alarming seven in 10 employers admitting their compensation packages are failing to attract top talent.
As a result, four out of five employees experience higher stress levels due to the influx of underqualified staff. A similar number of employers realize that hiring better qualified candidates would reduce burnout among current staff.
The research found that employers use a deceptive tactic to attract certain employees. They artificially increase the salary offer and then reduce it in the final interview stage. But with 81% of candidates dropping out at this stage, Robert Walters believes that this can only cause reputational damage.
“Allocating budget to hiring well-qualified talent from the outset could be a more strategic investment, potentially saving time and improving overall performance,” said Sean Puddle, Managing Director of Robert Walters New York.
“This not only impacts the overall performance and growth potential of the company, but also puts unnecessary pressure on existing employees.”