A/E Industry lacks planning, but still spending large on hiring
Zweig Group recently released the 2017 Recruitment & Retention Survey of Architecture, Engineering, Planning and Environmental Consulting Firms.
The survey found that the average firm is spending a significant amount on new hires, even at average turnover rates, yet may not be budgeting appropriately, according to research conducted by Will Swearingen
, Zweig Group's director of research and development.
Will Swearingen, Research and Development
Only 30 percent of firms who responded to the survey have an HR/Recruiting budget. Sixty-five percent of industry firms have in-house hiring/recruitment staff, with 25 percent reporting their hiring needs are beyond the scope of this staff.
Zweig Group’s director of executive search, Randy Wilburn
, says firms can determine how much to budget for recruiting based on their needs, staff turnover rates, and growth projections.
“For instance, if a company currently has 200 people and an average turnover rate of 8-10 percent (industry average), it can expect to lose 16-20 people each year. If that firm wants to grow by 15 percent annually, it will need to hire 30 people, plus make up for the 16-20 that will likely be lost through attrition,” Wilburn says. “This equates to a total of 46-50 people the firm needs to hire over a 12-month period.”
Hiring in this industry takes on average between 30 and 60 days, and firms spend on average $4,454 on each new hire.
Using the numbers above, that 200-person firm is probably spending around $200,000 per year on new hires alone, not including salaries or bonuses.
Firms are not spending significantly on the search phase of hiring, with word of mouth/referrals reported as the greatest source of new hires for the industry and internet advertising following closely behind (24 percent).
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For more information on this survey visit: zweiggroup.com/surveys
About Zweig Group
Zweig Group, three times on the Inc. 500/5000 list, is the industry leader and premiere authority in AEC firm management and marketing, the go-to source for data and research, and the leading provider of customized learning and training. Zweig Group exists to help AEC firms succeed in a complicated and challenging marketplace through services that include: Mergers & Acquisitions, Strategic Planning, Valuation, Executive Search, Board of Director Services, Ownership Transition, Marketing & Branding, and Business Development Training. The firm has offices in Dallas and Fayetteville, Arkansas.