More than 500 UK businesses took part in the survey, with 48 per cent encountering an associated issue in the last year.
Results suggest that the primary problem causers are the hiring of an unsuitable employee and breaching employment laws.
Nick Soret, Head of Employment Law Consultancy Support at NatWest Mentor, believes recruitment can be a difficult process for businesses.
“It’s clear that many companies experience difficulties when it comes to recruitment. On one level that’s actually a good sign, as it means recruitment is happening in line with the state of the economy and that businesses are concerned about getting it right.
“But many firms are simply not used to what can appear as confusing factors associated with taking on staff. This could be anything from getting the right documentation for workers from overseas to the hiring process itself.
“The message should be that the UK has what is probably the most flexible labour market in Europe and that it’s easier to hire a worker with few risks than employers might think.
“There are plenty of resources out there which can help. At NatWest Mentor we work to alleviate businesses concerns about HR related issues – with the pressure removed, businesses can be safe in the knowledge that they are recruiting the best possible candidates for their company.”
Recruitment of staff can be challenging for companies, especially SMEs that are controlled by smaller budgets. However, the temptation to cut corners when hiring can lead to decisions that place the business at risk. The CIPD estimates that the average cost of recruiting the wrong person is £8,200, rising to £12,000 for senior managers.
Employment Tribunal claims can be a by-product of this and can be made against a company even before an employment relationship starts.
