Average employee tenure is just over four years (1) and has been declining since 2014. As a result, employee retention is a critical factor for organizations of all sizes. Glassdoor has released new survey data (2) which reveals employers can increase retention rates by hiring candidates that take the 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 salary (3). Retention, therefore, is a business-critical area impacting every company’s bottom line.”
[Related: Employee Retention Playbook]
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 (5,770,5694) open jobs in the U.S. on Glassdoor (4), 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 (5), the average cost to rehire employees (21.4 percent  of an employee’s salary) and the average American worker’s base salary ($51,2107). 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.
[Related: Post a Free Job Today 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.
[Related: The 4 Cornerstones of Employee Retention]
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 $145,008 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,” said Dr. Chamberlain. “This data suggests that recruiting informed candidates can result in big savings for any employer, while also delivering them the quality talent they want.”
For more about employee turnover from Glassdoor Economic Research, please see:
To learn more about how to recruit and hire informed candidates on Glassdoor, visit the Glassdoor Employer Center with a Free Employer Account.
2.EMI Research Solutions, 2017
4.Based on unique U.S. job listings on Glassdoor as of January 22, 2018
5.EMI Research Solutions, 2017