Corporate recruiters may be increasing their expenditure on recruitment but they are failing to evaluate if the process is providing value for money, according to the Recruitment Confidence Index (RCI) produced by Cranfield School of Management.

It revealed that 84% of companies expect their overall recruitment expenditure to increase or stay the same over the next six months. 
Despite the increasing amounts of money that organisations are spending, 49% systematically evaluate the success of an individual recruitment process.

Dr Emma Parry, research fellow at Cranfield School of Management, says: “These results paint a worrying picture of businesses throwing money at recruitment without any idea if they are receiving a suitable return on their investment. This suggests that when recruitment is unsuccessful, recruiters just spend more and more on the same processes, rather than systematically assessing the success (or failure) of the methods they are using and making changes accordingly.”

The research shows that around a third of organisations (32%) have invested in a recruitment management system that may be able to track the success of recruitment in terms of costs per hire, but only around half of these (51%) are using the system to produce statistics that could assess the success of individual recruitment methods.