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Early Results Find Companies Spend $173 on Advertising Per Hire

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In 2012, the American National Standards Institute accepted The Society for Human Resources’ (SHRM) proposal to establish a recognized method for determining cost per hire.

Software Advice ran a survey to determine one key piece of companies’ external hiring costs: advertising and marketing cost per hire.

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Early Results Find Companies Spend $173 on Advertising Per Hire

  1. 1. Early Results Find Companies Spend $173 on Advertising Per Hire
  2. 2. Abstract In 2012, the American National Standards Institute accepted The Society for Human Resources’ (SHRM) proposal to establish a recognized method for determining cost per hire. The formula is as follows: CPH = ( External Costs + Internal Costs / Total Number of Hires) Software Advice ran a survey to determine one key piece of companies’ external hiring costs: advertising and marketing cost per hire. Key Takeaways: • Companies spend, on average, $173 on advertising per hire. • Small companies spend more on average for each new hire than large companies. • 85 percent of respondents said job boards were a primary advertising channel for their companies.
  3. 3. Average Cost-Per-Hire < $50 $51 - $100 $101 - $250 $251 - $500 $501 - $1,000 $1,001 - $5,000 $5,001+ Unknown 0 5 10 Number of Respondents The majority of respondents spend less than $500 per hire. Though, there were other respondents spending well above this. 15
  4. 4. Average Advertising Budget by Business Size 1 -50 employees 51 - 100 employees 101 - 250 employees 251 - 500 employees 501 - 1,000 employees 1,001 - 2,500 employees 2,501 - 5,000 employees 5,001 - 10,000 employees $0 $25,000 $50,000 Average Advertising Budget We averaged the total advertising spend by size of business. Not surprisingly, the bigger the company, the bigger their advertising budget.
  5. 5. Average Cost-Per-Hire by Business Size 1 -50 employees 51 - 100 employees 101 - 250 employees 251 - 500 employees 501 - 1,000 employees 1,001 - 2,500 employees 2,501 - 5,000 employees 5,001 - 10,000 employees $0 $250 $500 $750 $1,000 Average Cost-Per-Hire Calculating the average cost-per-hire by business size, we found that businesses with less than 50 employees spent more per hire than all other company sizes.
  6. 6. Most Often Used Advertising Channels Job Boards Social Networks Company Careers Pages Newspaper Ads Brochures SEM Other 0 15 30 45 60 Number of Respondents The most frequently-used channel was job boards, followed by social networks and company careers pages.
  7. 7. Positions of Respondents 9% 2% 3% Work in HR dept Work in another dept Business owner / CEO HR consultant Recruiting / staffing agency 12% 74% Almost 75 percent of our survey respondents worked in their company’s human resources department.
  8. 8. Respondents by Company Size 1 -50 employees 51 - 100 employees 101 - 250 employees 251 - 500 employees 501 - 1,000 employees 1,001 - 2,500 employees 2,501 - 5,000 employees 5,001 - 10,000 employees 0 5 10 15 Number of Respondents Almost half of our respondents worked at companies with 250 employees or less. Companies with less than 50 employees were the highest-responding demographic.
  9. 9. Types of Open Positions Advertised 13% Entry - level Mid - level Senior - level 23% 64% The majority of job postings advertised by respondents were for entry-level positions at their companies.
  10. 10. Text Read Report Read about our findings in more detail. @SoftwareAdvice /company/software-advice /SoftwareAdvice @SoftwareAdvice Software Advice is a trusted resource for software buyers. The company's website, www.softwareadvice.com, provides detailed reviews, comparisons and research to help organizations choose the right software. Meanwhile, the company’s team of software analysts provide free telephone consultations to help each software buyer identify systems that best fit their needs. In the process, Software Advice connects software buyers and sellers, generating high-quality opportunities for software vendors.

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