Average Cost-per-Hire for Companies Is $4,129

Navigating the complexities of hiring and employee retention is a critical challenge for modern businesses. The insights from the SHRM Human Capital Benchmarking Survey reveal key metrics that can help organizations optimize their human resource strategies. With data gathered from over 2,000 respondents, the report sheds light on various aspects of employment, from the financial implications of hiring to the effectiveness of succession planning. These findings provide a valuable resource for companies aiming to refine their practices and stay ahead in the competitive landscape.

In terms of employee retention, the average employee tenure is eight years, the annual turnover rate is 19 percent and the involuntary turnover rate is 8 percent. These statistics remained stable when compared to last year’s findings. 

The report analyzes data collected from the SHRM Human Capital Benchmarking Survey. The survey of 2,048 respondents measured employment, retirement, compensation, employer-paid tuition and other people metrics. 

Metrics from this report are useful to organizations as they evaluate their own operations and practices and can be customized to meet specific needs. 

Among other findings: 

• Tuition: 61 percent of employers offered tuition reimbursement. The average maximum reimbursement allowed for tuition/education expenses per year was approximately $4,000. 

• Compensation: The average annual salary increase was 2.7 percent each year. The average target bonus percentage for nonexecutives was 4.7 percent compared to 10.2 percent for executives.

• Retirement: Among those companies that offered a 401(k), 402(b) or similar plan (92 percent), an average of 66 percent of employees participated. The maximum employer match was 6 percent.

• Succession Planning: One-third of companies (34 percent) had a succession plan. The positions most commonly included in an organization’s succession plan included the executive team (76 percent), senior management (71 percent) and middle management (46 percent). 

• Management Responsibility: Those employees in middle management positions had the most direct reports (a median of 8 direct reports) compared to those at the executive level (a median of 5 direct reports).