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
Higher Education | Oct 10, 2023
Tracking the carbon footprint of higher education campuses in the era of online learning
With more effective use of their facilities, streamlining of administration, and thoughtful adoption of high-quality online learning, colleges and universities can raise enrollment by at least 30%, reducing their carbon footprint per student by 11% and lowering their cost per student by 15% with the same level of instruction and better student support.
Architects | Oct 4, 2023
Architects and contractors underestimate cyberattack risk
Design and construction industry firms underestimate their vulnerability to cyberattacks, according to a new report, Data Resilience in Design and Construction: How Digital Discipline Builds Stronger Firms by Dodge Construction Network and content security and management company Egnyte.
Building Materials | Oct 2, 2023
Purdue engineers develop intelligent architected materials
Purdue University civil engineers have developed innovative materials that can dissipate energy caused by various physical stresses without sustaining permanent damage.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Multifamily Housing | Sep 26, 2023
Midwest metros see greatest rent increase in September 2023
While the median monthly price of rent has increased by 0.71% in August, the year-over-year estimates show a national change of -0.06 percent.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Data Centers | Sep 15, 2023
Power constraints are restricting data center market growth
There is record global demand for new data centers, but availability of power is hampering market growth. That’s one of the key findings from a new CBRE report: Global Data Center Trends 2023.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
