Companies seeking savings in employee wages might spend more in the long run

Inflation has stretched the budgets of individuals and companies alike, and some firms have sought to find savings in the wages they pay their employees. A recent report from the Robert Walters recruiting agency found that Canadian firms are increasingly hiring underqualified employees. But that can backfire, says Professor Jean-Nicolas Reyt in interview with Canadian HR Reporter. “Sometimes having an unqualified person doing a complex job can be so much more expensive than just the little money you saved by not hiring somebody competent.” It can also lead to increased turnover, which can be costly. “If you need to onboard people every two years, instead of every four years or every five years, then you're constantly onboarding people. When people go, they leave with their knowledge and with their skills.”