Recently, Zippia published its research on the average cost per hire in 2022. The bottom line is that internal human resources teams significantly increase an organization’s cost per hire. Some data report this cost can increase by 50% or more.
The Harvard Business Review reported that employee turnover costs could range between 100 – 300% of said employee’s compensation. Additionally, 23% of new hires will find a different opportunity before one year on the job.
So, just how much are your internal HR teams costing your business? Well, according to Zippia, “The average vacancy costs employers a staggering $4,129 over 42 days, the time it typically takes to fill an open position. This breaks down to just over $98 per day, plus the additional funds allocated towards recruitment.”
Other staggering statistics from Zippia’s latest report paint a picture of shrinking budgets for hiring managers and executives. Take a look:
- The average time it takes for employers to place a professional in the U.S. is 36 – 42 days.
- Benefits can eat up 25 to 45% of an organization’s budget.
- One bad hire can cost a company up to 300% of that employee’s salary.
What can organizations do to mitigate a high average cost per hire?
Regarding these new data points, we recognize it can be daunting to find room in your budget. That’s why it’s time to increase your bottom line by utilizing APC’s experienced team of recruiters and bench talent. We use our network to put the right team in your hands, no matter how technical your needs might be.
Kristen Burgess is the Marketing Specialist at Alliance of Professionals & Consultants, Inc. She has five years’ experience in curating content for digital platforms, social media contributions, and supporting marketing campaigns and strategies. Before joining the APC wolfpack, she worked in digital marketing for software as a service, giving her keen insight into the types of professionals APC hires today. In addition, she likes to stay up-to-date on the most relevant trends within the technology industry through thought-provoking podcasts and newsletters while paying attention to industry leaders’ trends. In her spare time, she serves on the Management Team and helps craft communications for the Junior League of Durham and Orange Counties.
