As the decision to hire becomes more and more driven by data, it’s important for decision makers and hiring managers to look beyond their own hiring data.
Online review management company Glassdoor have recently reviewed the top UK recruiting statistics including survey data from both employers and job seekers. We’ve summarised some of the most useful data below and spoke to Charlie Collier of CMD to find out his thoughts on the current recruitment market.
1. The average cost-per-hire in the UK is about £3000, with the average length of the job interview process standing at about 27.5 days
As a business, we have noticed that a lengthy interview process is having a damaging effect on the candidate’s experience. The candidate market is difficult – we are all well aware of the national skills shortage, along with the highest employment rate in the UK since the ’70s. It is therefore imperative that the interview process is as streamlined as it can be.
Candidates are not on the market for long and an interview process that takes longer than 14 days could see you lose your favourite candidate altogether.
Whilst the average fee of £3000 is about right for low to mid-level management positions, I predict these will increase during 2019 and 2020 as the market gets tougher. Competition for the best candidates will become harder and the cost of recruitment will increase. Only agencies with the best recruitment tools available will be able to cast the net as wide as necessary to capture the right candidate for the position in question.
I would fully recommend companies to streamline their recruitment process as best as possible whilst realising that extra budget may be needed to capture the perfect candidate that ticks all the boxes – the hidden cost of a bad hire could be upwards of £60,000 for a middle management position.
- Charlie Collier, Business Development Manager of CMD Recruitment
2. 76% of hiring decision-makers say attracting quality candidates is their #1 challenge and 88% agree that an informed candidate is a quality candidate
3. Employers stated that the top three benefits of hiring an informed candidate are:
- Better employee retention
- More productive employees
- More engaged employees
4. 75% of hiring decision makers agreed that attracting passive candidates (those not actively looking for a job) is more of a challenge, as they tend to respond at a much lower rate
5. 3 in 4 hiring decision-makers say it’s easier to attract top talent when the candidate knows about your organisation, confirming that employer brand is a powerful business tool
Quality candidates who are informed about your organisation are more likely to be hired. Also, once an informed candidate becomes an employee they’re more productive and more likely to stay.
6. 4 in 5 job seekers research a company’s online reviews and ratings when deciding whether to apply for a job
7. 84% of job seekers say that a company’s reputation is crucial when deciding where to apply for a job
8. The top five considerations job seekers take into account before accepting a job offer are:
- Salary and compensation
- Work-life balance
- Career opportunities
9. It costs employers 33% of an employee’s annual salary to hire a replacement if that worker leaves
10. Role changes are almost 3x more likely to occur by switching employers rather than due to a promotion:
- 73% of workers left their employer to change roles
- 27% of workers stayed at the same employer
11. Workers who change jobs earn an average pay raise of £2,066 per year or 53%, compared to 2.9% national average
12. If employees don’t feel challenged in a given role for a 10 month period, there is a 1% higher chance that these employees will leave the company for their next role.
13. On average, a 10% higher base pay is associated with a 1.5% higher chance that a worker will stay at the company for their next role.
14. An analysis of more than 20,000 firms in 91 countries found that companies with more female executives are more profitable
15. Highly inclusive organisations generate 1.4x more revenue and are 120% more capable of meeting financial targets
16. More than 40% of millennials select employers based on their health and wellness benefit package
While we’re on the topic of millennials…
17. 21% of millennial workers had left their job in the last year to do something else, 3x higher than that of non-millennials doing the same
18. 6/10 millennials also say they are open to different job opportunities
19. 57% of the millennial workforce expect to move job within two years, while 40% will move within one year