20+ Essential Hiring Statistics [2023]: Everything You Need To Know About Hiring

HR Statistics

Research Summary: We’ve all been through the hiring process. For some, it can be a breeze, while others might spend a harrowing five weeks bouncing back and forth between interviews. One thing is for certain; there are several interesting aspects to the hiring process everyone should know about.

Luckily, we’ve investigated all of the essential facts about the US hiring process, and according to our extensive research:

37% of US workers are passive candidates who’re interested in a new job but not actively searching.
78% of companies say that ATS makes hiring easier than ever.
60% of job seekers stop midway through the job application.
Prior experience is the most important factor for recruiters, with 82% agreeing that it is.
It takes an average of 42 days to fill a job vacancy.

Reasons Job Candidates Reject Offers

Job Seeker Statistics

Job seekers have to dive into the hiring process one way or another. To understand how seekers navigate the process and what makes them successful, here are the facts:

50% of all applications come from job board sites.

The majority of applications come from job board sites, while 35% come from internal career sites.
75% of job changers use LinkedIn to inform their career decision.

And there’s a reason why, as LinkedIn-influenced hires are 2X more likely to appeal to employers. Plus, the networking provided by LinkedIn allows potential hires to get their foot in the door, so to speak.
The average job seeker spends between 20-25 hours a week searching for a new job.

Of course, these numbers can also vary depending on someone’s circumstances. For instance, someone in college or currently working full time might expect to spend 10-15 hours searching per week, while someone unemployed could spend upwards of 40 hours per week searching.
61% of new hires say their new job is different from what they expected.

This is especially true for male hires, for which 65% say their new job is different from what they expected. While 56% of women say the same.
37% of job seekers move on to another job posting if they can’t find information about a company online.

Searching for information about a company is a quick and easy way to avoid job scams. After all, it’s hard to trust a company that may or may not exist.

Hiring Priority Statistics

In order to hire effectively, recruiters and employers must prioritize. To find out just what’s most important to them, we’ve gathered all of the essential research:

Building a “talent pipeline” is the number one priority for recruiters, with 43% putting it first.

The next two most common priorities include candidate experience and time to hire, which are the number one priority for 29% of recruiters respectfully.
The talent pool is 10X bigger when using employee networks

Finding new hires is easier than ever when using employee networks. This is why sites like LinkedIn and employee referrals are such an effective way of finding new candidates.
69% of executives consider diversity and inclusion an important issue.

And there’s a reason why, as 43% of companies who prioritize diversity actually see higher profits. With that in mind, companies can kill two birds with one stone by simply searching out diverse candidates.

Hiring Priorities For Recruiters

Priority Share of recruiters who say it’s #1

Building a talent pipeline 43%

Candidate experience 29%

Time to hire 29%

Priority	Share of recruiters who say it’s #1
Building a talent pipeline	43%
Candidate experience	29%
Time to hire	29%

Job Offer Rejection Statistics

Just because candidates successfully move through the hiring process doesn’t mean it’s an automatic win for employers. Many potential hires turn down job offers during the hiring process. Consider the following:

39% of candidates turn down a job offer because compensation wasn’t high enough.

While this is the most common reason candidates turn down jobs, there are a few other reasons as well. More often, candidates will also choose to reject a job offer if they receive another offer or if the employer takes too long to respond.

89% of employers think their employees leave for higher compensation.

More than anything else, most employers assume their employees leave for higher pay. This can lead to the company offering counter-offers with higher compensation in an attempt to keep valuable employees.

Reasons Why Candidates Reject Job Offers

Reason for rejection	Share of candidates
Compensation wasn’t high enough	39%
Accepted a different job offer	29%
Accepted counteroffer from current employer	11%
Slow interview process	10%
Job responsibilities	4%
Spouse didn’t want to relocate	4%

Hiring Statistics by Job Level

Many Americans find it difficult to find jobs, despite their experience level. You might be wondering what really makes a difference with employers. Well, our research shows that:

87% of recruiters say a four-year degree makes you an entry-level candidate competitive

Having a college degree can make it much easier to achieve an entry-level job. However, whether or not this entry-level job pays for your degree entirely depends on what field you choose to pursue.
41% of companies say entry-level jobs are the hardest to fill.

And considering what recruiters say about having a four-year degree, that makes entry-level jobs the easiest for educated individuals to pursue.

Recruitment Struggle Statistics

It’s not only the people looking for jobs who struggle, as many employers and recruiters also struggle to find ideal candidates. According to our research:

90% of employers struggle to find skilled candidates

In the wake of the “Great Resignation,” there are now thousands of new jobs on the job market. This makes it exceedingly difficult for jobs to find qualified candidates, as these candidates have the ability to accept only the most appealing offers.
76% of recruiters say their biggest challenge is attracting qualified candidates

As mentioned in the summary, many job seekers are passive and not actively looking for a job. This can make it very difficult for recruiters to find the best possible candidates.
The average cost of a bad hire is $14,900.

While that’s already a lot, this number can reach as high as $240,000, depending on the position. Overall, the average bad hire will cost an employer 30% of the employee’s first-year earnings.
On average, there are 250 resumes sent per job posting.

That’s a lot of resumes to sift through, which explains why the average employer will only spend 6-7 seconds looking at yours.

Hiring Trends and Projections

Due to COVID-19 and the Great Resignation, hiring is currently in a pretty crazy state. What will hiring look like in the future, though? Well, according to our research:

77% of talent professionals report that diversity is crucial for the future of recruitment.

In fact, as of 2022, a considerable 80% of talent professionals have ranked “diversity hiring” as the most important trend. No doubt, this will have a major impact on how recruiters choose candidates.
Only 16% of HR professionals feel prepared to adapt to virtual recruiting.

In the wake of the COVID-19 Pandemic, virtual recruiting has become more popular. However, the fact is that most HR professionals are unprepared to work with online processes. More training will be necessary if recruiters and employers intend to continue moving their hiring process online.

Hiring Statistics FAQ

What is the average time to hire?

The average time to hire in the US is 24 days. This includes seven days just to start screening the job posting, ten days to screen and interview applicants, and another five days to accept an applicant.

For many companies, though, poor management and an influx of applications can drag out the process. In these instances, it’s likely that many candidates will drop out of the process because it’s taking too long.
What percentage of applicants are hired?

Only 11% of applicants are hired. This isn’t particularly hard to believe, as there are up to 250 applications submitted per job listing. Even in the wake of the Great Resignation, competition for the best jobs still remains fierce.
How much does it cost to hire someone?

It costs an average of $4,000 to hire someone. And it’s incredibly important for businesses to get it right, as hiring the wrong candidate costs far more than that.

In fact, The average cost of a bad hire is $14,900 but can reach as high as $240,000 depending on the position. Overall, the average bad hire will cost an employer 30% of the employee’s first-year earnings.
What is the top source of new hires?

Employee referrals are the top source of new hires. On average, referrals account for 30% of all hires and 45% of all internal hires.

This highlights just how important networking and social media sites like LinkedIn are when you’re job searching. Knowing the right person can land you a job that could take others months to get under typical circumstances.

Conclusion

Trying to hire or be hired can be a stressful experience, but knowing how the process works can make things a whole lot simpler. The fact is that things like prior experience, compensation, and something as simple as how long it takes an employer to respond can make or break the process.

Consider the fact that a whopping 89% of employers think their employees leave for higher compensation or that prior experience is the most important factor for 82% of recruiters.

Overall, you can use statistics like these to your advantage. Whether you’re an employer or candidate, it’s important to network and keep up to date with today’s average salaries, benefits, and more. In doing these, you’ll set yourself up for success on the job market.

References

Resources for Employers. “INFOGRAPHIC: 37% of US workers are passive candidates. Who are they?” Accessed on August 22nd, 2022.
SHRM. “Study: Most Job Seekers Abandon Online Job Applications.” Accessed on August 22nd, 2022.
CivicPlus. “5 Ways to Leverage LinkedIn for More Than Job Ads in Talent Management.” Accessed on August 22nd, 2022.
IMDiversity. “How Much Time Should you Spend on Your Job Search?” Accessed on August 22nd, 2022.
Hyreo. “Top hiring priorities for recruiters.” Accessed on August 22nd, 2022.
LinkedIn. “The Ultimate List of Hiring Statistics.” Accessed on August 22nd, 2022.
Job Monkey. “Why Do Job Candidates Turn Down Job Offers?” Accessed on August 22nd, 2022.
Forbes. “To Attract The Best, First Understand Why They Leave.” Accessed on August 22nd, 2022.
ABC. “Small businesses still struggle to find enough workers.” Accessed on August 22nd, 2022.
Business News Daily. “How Much Is That Bad Hire Really Costing Your Business?” Accessed on August 22nd, 2022.
ERE. “Why You Can’t Get A Job … Recruiting Explained By the Numbers.” Accessed on August 22nd, 2022.
Benefits Pro. “Attracting diverse talent begins with an inclusive, ‘people-first’ culture.” Accessed on August 22nd, 2022.
Business News Daily. “How to Hire New Employees During the Coronavirus Outbreak.” Accessed on August 22nd, 2022.

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.