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
AEC Tech | Feb 13, 2020
Exclusive research: Download the final report for BD+C's Giants 300 Technology and Innovation Study
This survey of 130 of the nation's largest architecture, engineering, and construction firms tracks the state of AEC technology adoption and innovation initiatives at the AEC Giants.
Office Buildings | Feb 11, 2020
Forget Class A: The opportunity is with Class B and C office properties
There’s money to be made in rehabbing Class B and Class C office buildings, according to a new ULI report.
Industry Research | Dec 13, 2019
Attention building design experts: BD+C editors need your input for our 2020 Color Trends Survey
The 2020 Color Trends research project will assess leading and emerging trends and drivers related to the use of color on commercial, institutional, and multifamily building projects.
Architects | Sep 11, 2019
Buoyed by construction activity, architect compensation continues to see healthy gains
The latest AIA report breaks down its survey data by 44 positions and 28 metros.
Industry Research | Aug 29, 2019
Construction firms expect labor shortages to worsen over the next year
A new AGC-Autodesk survey finds more companies turning to technology to support their jobsites.
Codes and Standards | Aug 29, 2019
Industry leaders ask for government help as trades shortage worsens
AGC asks for more funding for education and increased immigration to fill gaps.
Multifamily Housing | Aug 19, 2019
Top 10 outdoor amenities in multifamily housing for 2019
Top 10 results in the “Outdoor Amenities” category in our Multifamily Design+Construction Amenities Survey 2019.
Multifamily Housing | Aug 12, 2019
Multifamily Amenities 2019: Rethinking the $30,000 cup of coffee
What amenities are “must-have” rather than “nice to have” for the local market? Which amenities will attract the renters or buyers you’re targeting? The 2019 Multifamily Amenities Survey measured 113 amenity choices.
Codes and Standards | Jun 27, 2019
Public restrooms being used for changing clothes, phone conversations, and 'getting away'
About 60% of Americans use a public restroom one to five times a week, according to the latest annual hand washing survey conducted by Bradley Corporation.