The HR Industry Benchmark Survey by ELMO Software has revealed the cost of hiring an employee has more than doubled in the past year.
It now costs an average of $23,860 per candidate, an increase of $13,360 on last year’s costs. The time it takes to hire has also increased, sitting at an average of 40 days.
It’s a hefty price to pay – adding to the current battle for skilled staff.
With recruitment becoming more costly and time-consuming, employers are beginning to look to staff retention. Research shows that 86% of employers are now worried about losing their top employees – and with good reason! The same survey shows that 43% of workers will actively search for a new role this year.
With high growth targets across enterprises of all sizes, it is anticipated that employers will begin to turn to new tactics and perks to attract and retain talent.
“The cost to hire new employees is a great incentive for employers to do all they can to retain their talented workforce,” says ELMO Software CEO, Danny Lessem.
He says it will be hard enough for organisations to try and recruit talented people to fill the roles that have originated due to the growth of the business, let alone try to replace departing employees.
Sarah McCann-Bartlett, CEO of the Australian Human Resources Institute, says, “The research confirmed that organisations’ biggest issues over the next 12 months are recruitment, followed closely by skills and leadership development.
“This isn’t surprising, with anticipated higher turnover, increased hiring intentions and skills shortages all coming to the fore at the same time,” she noted.
It’s a perfect storm now of hiring needs, candidate choices, staff shortages and the rising cost of hiring. With all these factors at play, it’s time to focus on your retention plans, hiring processes and employee value proposition.