MILL VALLEY, CA (March 28, 2018) – Average employee tenure is just over four years and has been declining since 2014. As a result, employee retention is a critical factor for organizations of all sizes. Glassdoor, one of the world’s largest job and recruiting sites, has released new survey data which reveals employers can increase retention rates by hiring candidates that take time to research a job and company on Glassdoor during their job search.
The survey, which was conducted among 2,500 U.S. employed adults, shows that informed candidates who were hired and used Glassdoor in their job search have significantly higher retention rates than hires who did not use Glassdoor. Specifically, employees who used Glassdoor during their job search remained at their employers at a rate 30 percent higher than those who did not use Glassdoor.
“This data shows that people who use Glassdoor when searching and applying to jobs are more likely to stay with their employer once hired because they are more informed, and thus make better decisions as to which job and company is the right fit for them,” said Glassdoor’s Chief Economist, Dr. Andrew Chamberlain. “We also know that employee turnover is expensive, to the point where losing an employee costs around one fifth of that employee’s salary3. Retention, therefore, is a business-critical area impacting every company’s bottom line.”
Recruiting People Who Use Glassdoor Translates to Significant Savings for Employers
Glassdoor’s Economic Research team took the survey data one step further and explored the impact that recruiting exclusively through Glassdoor could have on a company’s bottom line.
With nearly six million (5,770,569) open jobs in the U.S. on Glassdoor, the total cost to rehire and fill these roles will cost employers between $29.1 billion and $32.6 billion over four years. This is determined by taking into account a typical four-year retention rate of 49 percent, the average cost to rehire employees (21.4 percent of an employee’s salary) and the average American worker’s base salary ($51,210). But a Glassdoor Economic Research analysis shows that employers could save tens to hundreds of thousands of dollars in recruiting costs if they were to exclusively hire candidates who research the job and company on Glassdoor.
Glassdoor’s Chief Economist also created a free calculator that estimates average cost savings that any employer can expect from better employee retention by hiring discerning candidates on Glassdoor. Just enter the number of open jobs, average salary, and a company’s average cost per hire (for recruiting, hiring and onboarding new candidates as a percentage of the typical employee’s salary). The calculator shows a company’s average cost savings over a four-year period from hiring on Glassdoor compared to other candidate sources.
For example, based on the calculator, if a tech company in the San Francisco Bay Area with 20 open data scientist jobs with an average base salary of approximately $145,000 were to exclusively hire candidates who were more informed (by having visited Glassdoor during their job search), the employer could potentially save $105,502 on recruiting and hiring costs over four years, by having to recruit and rehire fewer employees.
“As recruiting budgets tighten and a healthy job market persists offering job seekers options, it is more important than ever for employers to retain quality talent. This data suggests that recruiting informed candidates can result in big savings for any employer, while also delivering them the quality talent they want,” said Dr. Chamberlain.
To learn more about what defines an informed candidate and the value of recruiting and hiring informed candidates, please visit Glassdoor’s informed candidate research.
For more about employee turnover from Glassdoor Economic Research, please see: Why Do Workers Quit? The Factors That Predict Employee Turnover
To learn more about how to recruit and hire informed candidates on Glassdoor, visit the Glassdoor Employer Center with a Free Employer Account.
- EMI Research Solutions, 2017
- Based on unique U.S. job listings on Glassdoor as of January 22, 2018
- EMI Research Solutions, 2017
- Glassdoor Local Pay Report, December 2017
- Glassdoor Average Base Salary
Glassdoor is one of the largest job and recruiting sites in the world today. Set apart by the tens of millions of reviews and insights provided by employees and candidates, Glassdoor combines all the jobs with this valuable data to make it easy for people to find a job that is uniquely right for them. As a result, Glassdoor helps employers hire truly informed candidates at scale through effective recruiting solutions like job advertising and employer branding products. Launched in 2008, Glassdoor now has reviews and insights for more than 740,000 companies in more than 190 countries. For labor market trends and analysis, visit Glassdoor Economic Research. For company news and career advice and tips, visit the Glassdoor Blog and for employer-related news and insights to help employers hire, visit the Glassdoor for Employers Blog. Visit Glassdoor.com or download our apps on iOS and Android platforms.
“Glassdoor” and logo are proprietary trademarks of Glassdoor, Inc.