More than 40% of SMEs hire on basis of looks

David Woods, 11 November 2008

Nearly half (46%) of small (SMEs) firms confess hiring based on 'looks' rather than aptitude or qualifications.

This claim comes from a survey by social networking site Gumtree. The same survey reveals – perhaps unsurprisingly - that nine out of 10 SMEs claim they are unable to recruit good candidates despite spending more than £4,000 to hire each member of new staff on average.

The research found SMEs replace 25% of their workforces annually but struggle to recruit the right staff.

More than half (52%) claim their job advertisements have to be changed before they find the right candidate; 41% feel the need to use big words to make an advertised position sound better, and a quarter have trouble understanding their own job descriptions.

SMEs report problems with the interview process as well, with 33% spending a maximum of half an hour interviewing applicants and 46% confessing interviewees’ looks are the biggest factor in their decision to recruit.

Trisha Routledge, trends analyst at Gumtree, said: "Many smaller companies choose to look after their own recruitment practices in order to cut down on costs. If done correctly, companies can maximise the quality of candidates applying for jobs in their business."