What’s the Average Cost of Hiring a New Employee?
The average cost of hiring a new employee is $4,129, while the average time it takes to fill a given position is 42 days.
That’s according to the Society for Human Resource Management’s new Human Capital Benchmarking Report.
In terms of employee retention, the average employee tenure is eight years, the annual turnover rate is 19%, and the involuntary turnover rate is 8%. These statistics remained stable when compared to last year’s findings.
The report analyzes data collected from the SHRM Human Capital Benchmarking Survey in 2016. The survey of 2,048 respondents measured employment, retirement, compensation, employer-paid tuition, and other people metrics. The data was collected from February to April 2016 and reflect fiscal year 2015.
Tuition—61% of employers offered tuition reimbursement. The average maximum reimbursement allowed for tuition/education expenses per year was approximately $4,000.
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.
Retirement—Among those companies that offered a 401(k), 402(b) or similar plan (92%), an average of 66% of employees participated. The maximum employer match was 6%.
Succession planning—One-third of companies (34%) had a succession plan. The positions most commonly included in an organization’s succession plan included the executive team (76%), senior management (71%), and middle management (46%).
Management responsibility—Those employees in middle management positions had the most direct reports (a median of eight direct reports) compared to those at the executive level (a median of five direct reports).
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