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April 23, 2015 — Driven by increased competition for talent and a shortage of
critical skills, U.S. companies increased their talent acquisition spending 7
percent on average in 2014 from 2013, according to new research from Bersin by Deloitte, Deloitte Consulting LLP. That increase was in part due to an increase
to nearly $4,000 in cost per hire in 2014.
Summarized in a
complimentary WhatWorks® Brief, the research also found that more of that
spending focused on professional networks at the expense of agencies. The
findings appear in “Talent Acquisition Factbook 2015: Benchmarks and Trends in Spending, Staffing, and Key Recruiting Metrics.” Professional networking sites
saw allocation triple to claim 12 percent of recruiting budgets on average in
2014 from 2011, when only 4 percent of budgets were allocated to this source.
By contrast, agencies have seen a hit. Agencies and third-party recruiters
claimed just 18 percent of the recruiting budget in 2014, down from 38 percent
in 2011, as organizations switched their investments to a variety of less
costly channels, including professional networks. The study includes responses
from 412 organizations, and was conducted via online surveys.
“At a cost of
nearly $4,000 on average to fill an open position, U.S. companies are spending
nearly three times the amount spent on training per employee,” said Karen
O’Leonard, vice president, Benchmarking & Analytics Research, Bersin by
Deloitte, Deloitte Consulting LLP. “As the economy continues to rebound and the
job market becomes more transparent than ever, organizations recognize that
spending money strategically on recruitment, employment branding, sourcing and
the entire candidate experience is critically important.”
increased spending on professional networks, the research shows that company
websites drive more hires than other sources, followed by job boards, and
internal candidates. The research found that today, 10 percent of open
positions are filled using professional networking sites – the same percentage
as in 2011.
now routinely use company websites to assess a firm’s strengths and help
determine whether they would be a good fit with an organization before even
applying for a job,” said Robin Erickson, vice president, Talent Acquisition
Research, Bersin by Deloitte, Deloitte Consulting LLP. “This suggests that
while candidates may learn about a company or a particular job opening through
networking sites or social media, they typically apply for jobs via company
websites. These factors make employment branding and ease of website navigation
critical aspects of ensuring an excellent candidate experience during the
In addition, the
study found that:
To learn more,
register to join Robin Erickson, Jennifer Krider and guest Mike Walsh, senior
product marketing manager, Glassdoor for an online webinar, “Benchmarking Talent Acquisition: The shift to candidate-driven recruiting,” June 9, 2 p.m.
in learning more about Bersin by Deloitte or its WhatWorks® membership may
email firstname.lastname@example.org or call +1 510 251 4400.
About Bersin by
Deloitte delivers research-based people strategies designed to help leaders and
their organizations in their efforts to deliver exceptional business
performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR
professionals the information and tools they need to design and implement
leading practice solutions, benchmark against others, develop their staff, and
select and implement systems. A piece of Bersin by Deloitte research is
downloaded on average approximately every minute during the business day. More
than 5,000 organizations worldwide use our research and consulting to guide
their HR, talent and learning strategies. For more information, please visit
http://www.deloitte.com/bersin or http://www.bersin.com.
As used in this
document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of
Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries.
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1. Bureau of Labor
Statistics: U.S. Dept. of Labor. (2015). BLS News Release: Job Openings and
Labor Turnover- February 2015, www.bls.gov/news.release/pdf/jolts.pdf