Recruitment costs on average 4,494 euro
In a labour market with high demand and a lot of competition in order to hire the best, some employers are able to hire workers that are good enough and reduce the number of bad hires. They do this at lower costs and in a process that is almost twice as fast. According to our recent recruitment survey, there are three common characteristics that define these successful employers:
- Their recruiters have an average workload of 7 vacancies, 6 fewer than their competitors;
- They have more candidate interviews in a short period of time;
- They rely on labour market data in their recruitment process.
Successful recruitment departments score better than their competitors on all KPI's. Plus: they also measure those KPI's more often. About three quarters of the corporates in the Netherlands measure two or more KPI's for recruitment.
Focus pays off. Less is more
There is a positive relationship between the fulfillment ratio, the time to hire and the number of vacancies a recruiter needs to fill. Fewer vacancies means that recruiters have more focus on recruiting the right candidate, the application process becomes shorter, more personal and that more vacancies are filled. This suitable application process is positive for both employer and employee in the war for talent. Less is more. It is striking that outperformers have more interviews than the average performers and underperformers in a shorter period of time. This shows that focus is an important requirement for successful recruitment in a candidate market.
Outperformers rely on labour market data
In addition to focus, the use of labour market data is an important element in the recruitment process. Two thirds of the outperformers use labour market data, while on average only two out of five corporates use labour market data. When using labour market data, the recruitment process is five days shorter. It is important to choose the right data sources. Google data (67%) is the most widely used, followed by the Dutch 'DoelgroepenDashboard' (54%) and LinkedIn Talent Insights (42%).
"Labour market data helps to make choices. For example; where can you find the target group and where are you going to recruit? What is the recruitment feasibility? This makes the collaboration between a recruiter and hiring manager more of a partnership based on facts", says Gijs de Haas van Dorsser, Managing Director Intelligence Group.
Key figures summed up
These are the most important key figures for recruitment summed up:
- A recruiter has an average workload of 13 vacancies at any given time. An outperformer 7.
- The fulfillment ratio is 82%, which is the share of filled vacancies in 2018.
- The average cost per hire is €4,494,- including personnel costs.
- The average time to hire is: 62 calendar days.
These numbers are the average of 109 corporates that participated in the survey.
About the survey
This leading research in the Dutch labour market gives insight into the most important key figures and answers the most important questions of recruitment managers. With the results of the research, recruitment managers can support their strategy with data and set up the recruitment department within the organisation in a smarter and more efficient way. In February 2019, the survey was conducted in the form of an online survey among Dutch companies. Recruiters and recruitment managers of corporates (both profit and non-profit) and agencies could take part in this survey. This research is made possible in part by our partners Compagnon, Werf& and Academie voor Arbeidsmarktcommunicatie.