What percentage of the revenue/operating budget of large hourly employers is dedicated to recruitment annually?
Hi! Thanks for your question on the percentage of the revenue/operating budget spent on recruitment by large hourly employers. The most useful sources I found to answer your request were PRNewswire and Google Finance. In short, most large companies spend approximately 7% of the total operating budget on talent acquisition. The most mature recruiting organizations spend $6,465 per employee, while immature recruiting organizations spend $3,258 per employee with regards to recruitment. As information was provided in a previous Wonder request for McDonald's, Walmart, Safeway, Target, and Sears, I focused my research on the remaining 5 companies in the article from Huffington Post. Below, you will find a deep dive of my findings.
Included in this request is information for Kroger, TJX Companies, Aramark, Macy's, and Starbucks. After extensive research through various industry reports, corporate websites, and SEC filings, I was unable to locate exact figures spent on the hiring and recruitment process; however, an estimate of this amount can be calculated by multiplying the annual operating expense by 7%.
- Annual Operating Expense: $106,254.00 million
- $106,254.00 million * .07 = $7,437.78 million spent on talent acquisition
- Annual Operating Expense: $29,417.17 million
- $29,417.17 million * .07 = $2,059.20 million spent on talent acquisition
- Annual Operating Expense: $13,669.51 million
- $13,669.51 million * .07 = $956,865 spent on talent acquisition
- Annual Operating Expense: $24,463.00 million
- $24,463.00 million * .07 = $1.712.41 million spent on talent acquisition
- Annual Operating Expense: $17,144.00 million
- $17,144.00 million * .07 = $1,200.08 million spent on talent acquisition
AMOUNT SPENT ON RECRUITMENT PER EMPLOYEE
According to Bersin by Deloitte, U.S. companies spend an average of $4,000 to fill each open position. Mature recruiting companies are those that are strategic about the hiring process and allow talent acquisition managers to take an active role in the hiring process. These organizations spend approximately $6,465 to recruit an employee. Lower maturity organizations are those that implement a more reactive, tactical approach to recruiting. These organizations are said to spend approximately $3,258 to recruit an employee. While spending less might seem appealing, Bersin by Deloitte notes it is worth it to spend more money on talent acquisition, as these more mature organizations have 40% less turnover and fill vacancies 20% faster than lower maturing organizations, resulting in money saved in the long run.
To wrap it up, U.S. companies spend approximately 7% of their operating expense budget on talent acquisition, to include recruitment and hiring of new employees. More mature organizations spend approximately $6,465 to recruit an employee, while organizations with lower recruitment maturity spend approximately $3,258 to recruit an employee.
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