Current Research from APQC Reveals a Wide Gap in Cost to Hire New Employees Among Organizations

Current Research From APQC Reveals a Wide Gap in Cost to Hire New Employees Among Organizations

(Houston, TX - January 19, 2006) - APQC, a non-profit research firm focused on identifying best practices, has released current benchmarking research in the source, recruit and select process through its Open Standards Benchmarking CollaborativeSM (OSBC) research. These current results reveal the total costs of the process "source, recruit and select" per new hire (cost effectiveness).

According to the research, there is a wide gap in cost to hire new employees between top-performing organizations and low performers.

As shown in the graph, APQC's data indicates that high performers spend $444 per new hire in a year compared to $5,749 in low-performing organizations.

When applied to the number of new hires in a low performing organization, managers can estimate the cost savings achievable by attaining top performing benchmark and communicate the value proposition for adopting best practices in the recruiting process.

This research found that good performance was linked to some of the following practices:

  • Different labor sourcing strategies/guidelines by function

  • Different sourcing methods used to build in flexibility in the workforce

  • Having the ability to quickly and effectively modify staffing levels


APQC offers organizations free access to benchmark their human capital management function.  You will see how your processes measure up to the best in class, communicate the value-gap to your organization, and take actions that save cost, improve efficiencies, cycle times and staff productivity. APQC's research covers all activities within the human capital management function to report hiring time, manage sourcing methods and identify job offer acceptance rates.

Data presented in these findings is obtained from the Open Standards Benchmarking CollaborativeSM (OSBC) database. For more details or to benchmark your organization's performance, visit or call 800.776.9676.