Key Takeaways

• In 2022, the average cost per hire for a non-executive position is about $4,700 while the cost per hire for an executive position averages $28,329. 
• Zippia projects that hiring costs in United States will increase by $50 billion in 2022 from $24 billion in 2019.
• The Human Resources Department on average spend 15% of its budget on the hiring process and it costs 40% of the base salary to hire a new employee with benefits.
• In the United States, companies spend about $8 billion per annum on DEI training. The cost to innovate a DEI program ranges from $25,000 — $450,000. On the other hand, online DEI courses cost between $20 — $50 per employee.
• Society of Human Resources Management reports that Fortune 1000 companies had DEI budgets of about $1.5 million per annum ranging from $30,000 - $5.1 million. 

Introduction

Spending on Hiring in the United States

• According to Talent Access Benchmarking Reports by Society for Human Resource Management, the average cost per hire for a non-executive position is about $4,700 in 2022. The median cost per hire is $1,244 which shows that some positions require a bigger budget to fill than others.
• Further, the cost per hire for an executive position averages $28,329. 

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  Source
   
• According to Zippia, the average cost per hire for non-executive positions was $4,425 in 2021, up from $4,129 in 2019 while the average cost per hire for executive positions was $14,936.  
• Zippia projects that hiring costs in United States will increase by $50 billion in 2022. At an average cost per hire of $4,129, the total monthly hiring cost was $24 billion in United States.
• A Glassdoor study and Deloitte estimates that the average cost per hire for a new employee is $4,000. Small companies are estimated to spend an average of $3,000 — $5,000 to hire a new employee.
• The Human Resources Department on average spend 15% of its budget on the hiring process and it costs 40% of the base salary to hire a new employee with benefits. Recruitment agencies charge between 15 — 25% of the annual salary for the employee.
• Edie Goldberg of E.L. Goldberg & Associates estimates that the cost of hiring a new employee is about 3 – 4 times the salary. Edie further states that 30 — 40% of the hiring cost is spent on hard costs while 60% is spent on soft costs such as time invested by managers in the hiring process.

 

Source

 

• The hiring costs or recruitment costs per employee include:
• One-month Job Posting costs from $37.50 — $999.
• Applicant Review Process costing $587.50.
• Pre-screening and background checks costing $180.
• Interview costs of about $106.25 and completion of hiring process costing $187.50.
• Time spent by Human Resource Manager costed at about $7,700 with an average salary of between $100,000 – 140,000 per year.
• Screening Software and video interview technology costing $600. Large companies spend about 7% of the hiring budget on ATS system.
• Referral Rewards ranging from $50 — $7,000 per position with an average of $2,000 per position.
• Training costs of $986 — $1,000 with an average of $400.
•  Society for Human Resource Management estimates that it takes between 36 – 42 days to fill a position in the United States and Training Magazine reports that it takes an average of 46.7 hours to train a new employee.

Spending on DEI in the United States

• According to Workforce Management, companies in the United States spend about $8 billion per annum on DEI training.
• The cost to innovate a DEI program ranges from $25,000 — $450,000. On the other hand, online DEI courses cost between $20 — $50 per employee.
• The costs of online DEI training include:
• Online course of $25 — $50 per employee.
• Workshop costing $500 -$2,000 for 20 – 50 employees.
•  $400 — $1,000 per DVD.
• Online certification of $135 — $2,000 per employee.
• Society of Human Resources Management reports that Fortune 1000 companies had DEI budgets of about $1.5 million per annum ranging from $30,000 - $5.1 million. 
• A study by Catalyst reports that 82% of its members have a budget for DEI programs and activities ranging from $10,000 to $216 million with a median of $1.2 million. 
•  50% of the DEI budget is spent on DEI training and general administrative costs while the rest is spent diversity marketing and outreach and recruiting.
• The Global Diversity and Inclusion Market in the United States was estimated at $3.8 billion in 2021. It accounted for 45.5% share in the global market
• The Center for American Progress reports that discrimination at the work place costs companies $64 billion per annum through loss and replacement of employees, and lawsuits.

Research Strategy