The Staffing Industry Analysts reports that companies are now on average spending $4,000 per hire in 2014. The study completed by consulting company Deloitte states that as labor markets are tightening due to improved economic conditions and increased demand. The report indicates that companies are trying to lower hiring cost buy using professional networking sites as well as there own company websites for hiring purposes over more expensive mediums like job boards and recruiters.
Driven by increased competition for talent and a shortage of critical skills, US companies increased talent acquisition spending 7% on average year over year in 2014 to nearly $4,000 in cost per hire, according to new research from Bersin by Deloitte.
Spending focused on professional networks at the expense of agencies, according to the research. Allocations to professional networking sites tripled to account for 12% of recruiting budgets on average in 2014, up from 4% in 2011. In contrast, agencies and third-party recruiters claimed 18% of the recruiting budget in 2014, down from 38% in 2011, as organizations switched their investments to a variety of less costly channels, including professional networks.