Although the economy appears to be recovering after the recent downturn, many smaller companies are still struggling with the financial strain of hiring. Here we look at a few facts and statistics that demonstrate the costs involved and the more cost-effective online hiring opportunities social media has to offer instead…
The Current Cost Statistics
The financial costs of hiring new employees include advertising, agency costs and the loss of pay relating to time it takes to train up new team members. Some interesting statistics are:
- One job posting alone on CareerBuilder costs $419. This is a massive amount of money in any currency so for the smaller businesses it can be nearly impossible to afford to spend that much advertising each vacant position.
- Small businesses showed only a .20 percent rise in hiring in the first quarter of the year suggesting a correlation between the current expense of recruiting and the lack of money businesses have to spend on it.
- Up to 80 percent of jobs are found through online searches and networking. This demonstrates the changing face of recruitment and can prompt smaller businesses to perhaps look for other avenues with which to find new employees.
The Social Networking Statistics
Now that the internet has allowed us to be online at any point in the day and from any place in the world, candidates are looking to the web to find work.
- 92 percent of companies in the United States use social networking sites for hiring. This is demonstrative of ways in which companies have had to adapt to how the modern generation of jobseekers search for work.
- 73 percent of the aforementioned companies made successful hires using social networking platforms. This is another statistic that proves there are capable and willing applicants out there using popular online platforms to help with job-based communication as well as in their personal lives.
- It’s not just LinkedIn that offers professional connections – Facebook and Twitter now have built in apps for job searching. Even the sites primarily used for picture sharing and status updating have cottoned on to the trend.
The reason social networking has become such a fundamental tool in recruitment is not just because of benefit to the candidate but also the benefit to small businesses who may previously have struggled using traditional methods. Such social sites are often free to join which cuts out some of the fees faced by independent or smaller companies, and with the opportunity to advertise multiple positions without the need to spend massive amounts of money on administrative and agency costs, social media offers businesses not just the chance to gain applications from a wider range of candidates but also an opportunity to raise the online profile of the company itself.
Jamie Mistlin find me on Google+.