Factors affecting hiring cost

As a resource for the hospitals and stakeholders we serve, we always respond to questions that come our way from time to time. We were recently asked about “the average cost-per-hire for the healthcare industry.” I thought it might be interesting to share my findings.

According to a Lauren Weber article in the Nov. 28, 2011 issue of The Wall Street Journal, healthcare companies have one of the lowest median costs-per-hire at $2,127. This is due to the rigidly defined skill and certification requirements for medical positions such as nurses. This simplifies hiring.

Other studies put the average cost-per-hire for healthcare slightly higher than the median, at $2,300. Factors for these costs include advertising, travel, salaries, benefits and relocation. These and other costs significantly influence the final number. When compared to healthcare, other industries may require far more specialized skill sets, hence higher costs. For example, manufacturing had the highest median recruitment cost of $6,440. Cost-per-hire is impacted by other factors, such as the use of dedicated recruitment employees or outsourced recruitment. The latter tends to be much more expensive for obvious reasons.

The size of your organization is another important factor in how cost-per-hire may be impacted. Larger organizations may have more resources, hence less cost creating scale advantage and vice versa.

This information is from a study by Bersin & Associates, a HR advisory firm. For more information, see the full article at http://online.wsj.com/article/