Poor employee induction processes is costing UK business £2 billion in lost productivity, sapping a valuable skills pool.

According to learning solutions provider Thomson NETg, failing to prepare a new employee can create low morale and productivity and can cost companies billions of pounds in recruitment costs.

Mike Summers, director of Thomson NETg, suggested that by providing basic training for the new employee before the job starts, such costs could be significantly cut. Outlining company policy and work programmes will enable the recruit to “hit the ground running from day one.”

Commenting on the perceived skills shortage in UK companies, Summers added: “In a climate where specific skills are becoming increasingly hard to find, it makes far more sense to get the induction right the first time, every time.

“A member of staff that doesn’t feel engaged with the business will end up leaving, through resignation or dismissal. This can cost companies much, much more in further recruitment and training.”