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Recruiting Costs for New Employees

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A study conducted by Bersin & Associates, a human resources advisory firm, shows that companies are seeing a significant advantage when it comes to recruiting costs for new employees. For a company that has more than 10,000 employees across the globe it will pay roughly $1,900 per new hire. This is compared to midsized companies that would pay $3,600 and small companies that would have to pay $3,660.

Small and medium-sized companies have to rely on outsourcing hiring because they tend to have fewer dedicated recruited employees. Outsourcing can be a very expensive venture per the thoughts of Josh Bersin, the chief executive and president of Bersin & Associates. Larger companies hire more employers than small and midsized companies relative to a recruitment staff, which helps to bring the costs down to an affordable level.

The highest recruiting costs per hire comes in the manufacturing industry, which is $6,440 per new hire. Jobs in the manufacturing industry require specialized skills with equipment, software, and other items, which is why the cost of a new hire is so high. The lowest cost for a new hire is the health care industry, which spends $2,200 on a new hire. The reason for the low new hire cost is the fact that applicants already have their certifications required to work the job.

In order to calculate the cost per hire, 414 companies had to add up their spending on their internal recruiting staff, third-party agencies, company career websites, applicant tracking software, job-listing services, college recruiting, employee referral programs plus other recruiting-related expenses and then divided that number by their total hires over the preceding year.

In relation to recruitment hiring, United States workers under age 30 tend to feel the highest levels of job satisfaction in the country. This study was conducted by the Center on Aging and Work at Boston College. According to the study, workers over the age of 50 are also very happy with their jobs. Those who are not happy with their jobs are between the ages of 30 and 39.

The median job satisfaction levels for the under 30 group and the over 50 group came in at a score of 4.66 and 4.55 respectively on a scale of one to six. Six is the highest rating on the scale, meaning it is the happiest rating for a worker. As for the group that does not find satisfaction in their jobs, 30-39, the rate was 4.33. People aged 40-49 were rated at 4.44. This was a 30-minute internet survey that received 1,156 responses in the United States.

Close to 40 percent of the survey’s respondents, most notably those over the age of 30, claimed they were dissatisfied with their organizations’ efforts to provide advancement and promotion opportunities.

Recruiting Costs for New Employees by
Authored by: Harrison Barnes