SHRM Survey: Average cost per hire is $4,129
For competitive reasons, it’s wise for employers to compare their HR metrics with the “average” employer. To do so, use these stats from the new Human Capital Benchmarking Report of more than 2,000 employers by the Society for Human Resource Management (SHRM):
HR-to-employee ratio. This ratio, a good way to compare HR staffing levels between organizations, is calculated by dividing the number of HR full-time equivalents (FTEs) by the total number of FTEs in an organization, and then multiplying the outcome by 100. The survey says the median HR-to-employee ratio is 1.33.
Cost per hire/time to fill. It costs the average employer $4,129 to hire a new employee, while the average time it takes to fill a new position is 42 days, the survey says.
Turnover rate. In terms of employee retention, the average amount of time employees stick with a job is eight years. The annual turnover rate for responding employers is 19% and the average involuntary turnover rate is 8%.
Management responsibility. Employees in middle management positions have the most direct reports (a median of eight direct reports) compared to those at the executive level (a median of five direct reports).
Compensation. The average annual salary increase was 2.7% each year. The average target bonus percentage for nonexecutives was 4.7% compared to 10.2% for executives. Salaries as a percentage of operating budget averaged 43.5%.
Retirement. Among those employers offering a 401(k) or similar plan (92% of respondents), an average of 66% of employees participated at those organizations. A full 84% of organizations provide employer contributions. And almost a third of employers (62%) have an automatic enrollment feature to their plans.
Succession planning. One-third of companies (34%) had a succession plan. Positions most commonly included: executive team (76%), senior management (71%) and middle management (46%).
Tuition. About six in 10 (61%) employers offered tuition reimbursement. The average maximum reimbursement allowed for tuition/education expenses per year was approximately $4,000.
Access the full HR benchmarking report at www.tinyurl.com/HRbench.