Hiring and retaining top talent is crucial for businesses, but it comes at a significant cost. From recruitment and onboarding to long-term retention, the financial and time investments required can be substantial. Below are key hiring stats that shed light on the true costs of hiring, along with solutions to streamline the process using AI tools.
1. Cost per Hire
- The average cost per hire is $4,700 (SHRM, 2023).
- Executive-level hires come with higher costs, averaging $28,329 (Toggle Hire, 2024).
2. Crafting the Perfect Job Description
A well-crafted job description can make or break your hiring success. It’s often the first interaction a potential candidate has with your company, so its quality is critical.
- First Impressions Matter: 52% of job seekers report that the quality of a job description is “very” or “extremely” influential in their decision to apply (Indeed).
- Culture is Key: 72% of candidates want to see company culture details in job descriptions (Indeed).
- Clarity is Crucial: 63% of candidates didn’t apply because they didn’t understand the specific skills or tools required, and 47% didn’t apply due to feeling unqualified based on experience listed (Indeed, 2018).
Want to craft a compelling job description effortlessly? Use our free AI-powered job description creator to create tailored job postings in seconds!
3. Time to Fill a Position
- Hiring a new position takes an average of 44 days (The Josh Bersin Company, 2023).
- For certain industries like Energy & Defense, hiring can take up to over 67 days (The Josh Bersin Company, 2023).
4. Streamlining Your Screening Process
A significant part of recruitment is filtering out qualified candidates, which can be time-consuming. However, AI tools can expedite this process.
Save time by using our AI Smart Resume Screening tool to scan and rank up to 5 resumes instantly. This tool helps match candidates’ skills to job requirements with minimal effort.
6. Employee Turnover Costs
- Replacing an employee can cost 1.5 to 2 times their annual salary (Josh Bersin).
- A bad hire can cost businesses an average of $14,900 (Career Builder, 2017).
7. Enhancing Employee Benchmarking
Hiring the right candidate means understanding how new applicants compare to your top performers. Benchmarking is an essential part of ensuring long-term employee success.
Use our AI benchmarking tool to compare new applicants’ skills and personalities against your top performers and create a more effective hiring process.
8. Recruiting Platforms and Channels
- Indeed is the biggest job site in the world, with 350M+ unique monthly visitors, and 3.5M+ employers (Indeed, 2024).
- 98% of companies use social media as a communication channel for recruitment, with LinkedIn (78%) and Facebook (65%) being the most used (Content Stadium, 2024).
9. The Importance of Culture and Diversity
- 84% of recruiters say culture fit is a key factor in hiring decisions (Talogy, 2016).
- 76% of employees consider diversity an important factor when evaluating a company (Glassdoor, 2021).
10. AI and Automation in Recruitment
- 79% of recruiters believe AI will make hiring and firing decisions in the near future (Intelion Systems, 2024).
- While just 27% of the talent professionals say that they’re using or experimenting with AI, 62% are optimistic about AI in recruitment (LinkedIn, 2024).
Looking to speed up your hiring process and cut down on costs? Book a call with us, and we’ll review your recruiting process to help you determine if Workwolf is the right solution for your needs.
