A Boost for Recruiting: Investments Lead to New Sourcing Strategies
January 24, 2012
Note: join our webinar on January 31st to understand how your organization’s recruiting spend stacks up. You’ll also hear useful tips on bringing your costs under control.
Bersin & Associates recently released its first-ever benchmarking report on US corporate recruiting, and there is some good news for recruiting professionals – for example, corporate spending on talent acquisition is up, and companies are hiring more recruiters. That’s a very positive sign considering the layoffs and spending cuts we saw during the last few years.
Hiring still remains an expensive business in the US, with the average cost per hire around $3500. However, large organizations (those with 10,000 or more employees) seem able to drive significant economies of scale, with their cost per hire coming in under $2000, just over half what small companies (100-999 employees) tend to pay.
The findings also highlight some key changes in sourcing strategies. They show some bad news for agencies and headhunters – one-half of companies say they decreased their spending here. And although job boards remain popular – used to fill 19 percent of open positions - they are definitely at risk. Progressive organizations are reducing their spending on job boards in favor of new tools that source both active and passive candidates. These tools include professional networking sites, social media, search engine marketing, CRM technology and others.
While these new sourcing tools are still in their infancy, our interviews with corporate talent acquisition leaders suggest that they are generating higher quality leads at lower cost than traditional job boards. A goal is to also use these tools to improve the overall candidate experience, thereby developing relationships with applicants for different or future positions, as well as those currently available.
To find out how you can make your US corporate recruiting budget go further in 2012, tune into our webinar on January 31st featuring Bersin & Associates.