Spending on talent acquisition grew 6 percent to roughly $124 million in 2011, with a greater portion of those funds being used on professional networks, social media and customer relationship management technology, rather than job boards and recruiting agencies, according to a study by Bersin & Associates, a human resources research and consulting firm.
The study also finds that although the number of job applicants is high, companies continue to face difficulty in finding qualified candidates, which is leading companies to encourage internal mobility programs to fill open positions.
"We estimate that U.S. companies are spending an average of $3,500 for every new hire brought into the organization – about three times the amount spent on training per employee," says Josh Bersin, CEO and president of Bersin & Associates. "This large expense is primarily going to agencies and job boards today, but companies increasingly are turning to professional and social networks for their recruiting needs. Our research shows that talent markets are out of balance: Even with the high unemployment rates in the U.S., companies must invest heavily in recruiting to find the 'right candidate,' leading to a greater-than-ever focus on social networks as a major new tool."
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In fact, 10 percent of open positions are filled by candidates from professional networking sites, the study finds, and this figure is believed to increase as recruiters and job seekers alike become more skilled at using these sites. Fifty percent of respondents reduced their agency spending in 2011, with one reason being the expense. While respondents spent more than one-third of their recruiting budgets on agencies, those recruiters only filled 8 percent of the positions.
But professional networks and social media aren't the only growing platforms for talent acquisitons. Respondents are also increasingly turning to their own employees to fill positions.
"Our research found that about at least one in every five open job requisitions is filled by an internal candidate," says Karen O'Leonard, principal analyst of Bersin & Associates."The figure for internal moves likely is even higher because some positions may be filled with internal employees without a requisition going to the recruiting department. Such efforts aid in filling vacancies, bolster employee engagement and trigger an influx of fresh ideas into new areas of the business."
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