Study: Smaller firms pay more for employee recruiting
Smaller firms pay significantly higher employee recruiting costs than their bigger counterparts, according to a recent study by human resources advisory firm Bersin & Associates, The Wall Street Journal reports.
The 414 companies that participated in the study calculated their cost per hire by taking into account their spending on internal recruiting staff, third-party agencies, company career websites, human resource software and other expenses.
Companies with more than 10,000 employees were found to have a large scale advantage, paying a median of $1,949 per hire. In contrast, mid-sized companies and small businesses both paid more than $3,600.
Cost variations between industries were also observed. Manufacturers footed the highest bill for recruitment costs per hire ($6,443), followed by business services ($5,700) and technology ($4,339).
Healthcare companies had the lowest cost - $2,127 - because of tightly defined hiring requirements based on skill levels and certification, according to Josh Bersin, chief executive and president of Bersin & Associates. Healthcare beat the banking and insurance industry ($2,530) and retail ($3,009) to the punch.
According to recent research from TNS Employee Insights, many HR departments are switching their focus from recruitment to retention after the October Jobs Report found that the number of employees who quit their positions rose by more than 100,000 compared to September.
The 414 companies that participated in the study calculated their cost per hire by taking into account their spending on internal recruiting staff, third-party agencies, company career websites, human resource software and other expenses.
Companies with more than 10,000 employees were found to have a large scale advantage, paying a median of $1,949 per hire. In contrast, mid-sized companies and small businesses both paid more than $3,600.
Cost variations between industries were also observed. Manufacturers footed the highest bill for recruitment costs per hire ($6,443), followed by business services ($5,700) and technology ($4,339).
Healthcare companies had the lowest cost - $2,127 - because of tightly defined hiring requirements based on skill levels and certification, according to Josh Bersin, chief executive and president of Bersin & Associates. Healthcare beat the banking and insurance industry ($2,530) and retail ($3,009) to the punch.
According to recent research from TNS Employee Insights, many HR departments are switching their focus from recruitment to retention after the October Jobs Report found that the number of employees who quit their positions rose by more than 100,000 compared to September.
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