Zweig Group recently released the 2017 Recruitment & Retention Survey of Architecture, Engineering, Planning and Environmental Consulting Firms. The survey found that the average firm is spending a significant amount on new hires, even at average turnover rates, yet may not be budgeting appropriately.
Only 30 percent of firms who responded to the survey have an HR/Recruiting budget. Sixty-five percent of industry firms have in-house hiring/recruitment staff, with 25 percent reporting their hiring needs are beyond the scope of this staff.
Zweig Group’s director of executive search, Randy Wilburn, says firms can determine how much to budget for recruiting based on their needs, staff turnover rates, and growth projections.
“For instance, if a company currently has 200 people and an average turnover rate of 8-10 percent (industry average), it can expect to lose 16-20 people each year. If that firm wants to grow by 15 percent annually, it will need to hire 30 people, plus make up for the 16-20 that will likely be lost through attrition. This equates to a total of 46-50 people the firm needs to hire over a 12-month period,” he says.
Hiring in this industry takes on average between 30 and 60 days, and firms spend on average $4,454 on each new hire.
Using the numbers above, that 200-person firm is probably spending around $200,000 per year on new hires alone (not including salaries or bonuses)!
Firms are not spending significantly on the search phase of hiring, with word of mouth/referrals reported as the greatest source of new hires for the industry and internet advertising following closely behind (24 percent).
For more information on this survey visit: zweiggroup.com/surveys.
Related Stories
Sponsored | Industry Research | Oct 26, 2017
Get clients to pay you faster with these five tips
Here are 5 ways to avoid a cash crunch by doing your part to help clients make their payments on time.
Market Data | Oct 19, 2017
Architecture Billings Index backslides slightly
Business conditions easing in the West.
Industry Research | Oct 9, 2017
AEC website design trends in 2017 – Planning for 2018
A website that’s behind the times is hurting your business.
Industry Research | Oct 3, 2017
Nonresidential construction spending stabilizes in August
Spending on nonresidential construction services is still down on a YOY basis.
Market Data | Sep 21, 2017
Architecture Billings Index continues growth streak
Design services remain in high demand across all regions and in all major sectors.
Market Data | Sep 21, 2017
How brand research delivers competitive advantage
Brand research is a process that firms can use to measure their reputation and visibility in the marketplace.
Contractors | Sep 19, 2017
Commercial Construction Index finds high optimism in U.S. commercial construction industry
Hurricane recovery efforts expected to heighten concerns about labor scarcities in the south, where two-thirds of contractors already face worker shortages.
Multifamily Housing | Sep 15, 2017
Hurricane Harvey damaged fewer apartments in greater Houston than estimated
As of Sept. 14, 166 properties reported damage to 8,956 units, about 1.4% of the total supply of apartments, according to ApartmentData.com.
High-rise Construction | Sep 8, 2017
CTBUH determines fastest elevators and longest runs in the world in new TBIN Study
When it comes to the tallest skyscrapers in the world, the vertical commute in the building becomes just as important as the horizontal commute through the city.
Multifamily Housing | Sep 5, 2017
Free WiFi, meeting rooms most popular business services amenities in multifamily developments
Complimentary, building-wide WiFi is more or less a given for marketing purposes in the multifamily arena.