Hiring talent is expensive.
Not only are salaries one of the largest expenditures for businesses, but the hiring process, insurance and taxes all add to the additional cost of a new hire. A paper by MIT actually estimated that the cost for an employee is somewhere from 1.25 to 1.4x the cost of their base salary.
Thankfully, hiring is also one of the best things a company can do for itself, and the costs for hiring employees are almost always justified.
But that doesn’t mean there aren’t ways in which you can limit the cost of recruiting expenses. Below we’ve outlined some of the most essential facts and stats, when it comes to understanding the cost of interview and recruiting expenses.
How Much Do Recruiting Expenses Cost?
- The average cost of a new hire last year was $4,000 (Glassdoor, 2019)
- 15% of all HR related expenses are due to recruitment costs (Society for Human Resource Management, 2017)
- The major costs associated with recruiting and interviewing were recruiting staff (in-house and external), job boards and marketing, recruitment process (including travel, background checks, and work eligibility checks) and referral rewards (Glassdoor, 2019)
- Hiring for companies 0-500 employees can be up to 91% higher than the average (Hundred5, 2018)
- University trips constituted 26.4% of all university recruiting budgets (National Association of Colleges and Employers, 2017)
- Most of the $20 billion that companies spend annually on human resources vendors goes to hiring (Harvard Business Review, 2019)
- Outside hires take three years to perform as well as internal hires in the same job (Harvard Business Review, 2019).
- Companies spend between 24 to 34% their T&E budget on air travel (JP Morgan, Corporate T&E Spend)
- 40% of U.S. companies outsource their hiring process (Harvard Business Review, 2019)
- The average job took took 24 days to fill (Glassdoor, 2019)
- Only 28% of talent acquisition leaders today report that internal candidates are an important source of people to fill vacancies (Harvard Business Review, 2019).
- Three interviews conducted was the most common before an offer. 31% had five or more, and only 18% of offers came after 1 or 2 interviews (Recruiter Sentiment Study MRI Network, 2017)
- Lengthy hiring process was responsible for 11% of job offers rejected by recruiters (Recruiter Sentiment Study MRI Network, 2017)
- More than half the people currently hired are looking for a new job (Top Resume, 2017)
- Employers took on average 1-2 weeks after an initial interview to reject an offer (Recruiter Sentiment Study MRI Network, 2017)
- For every 250 resumes, only four to six will be called on for interviews, and only one will be offered a job. (Glassdoor, 2016)
- 74% of the workforce was open to moving for a job in 2016 (Jobvite, 2017)
- The U.S. fills 66 million jobs a year (Harvard Business Review, 2019)
- The average cost of a domestic flight is $364. (Bureau of Transportation Statistics, 2019)
- 20% of moves were done for work related purposes (U.S. Census, 2016)
- A job candidate’s rating of a potential employer can sink to one star (on Glassdoor), if the process of being reimbursed is lengthy and cumbersome (Orion Mobility, 2018)
- Automation software and reimbursement one of the keys to a smoother interview process (Abacus, 2019)
For more on how to streamline your recruiting expenses with a travel card, check out our post on how to make recruiting travel as easy as possible.