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  • Data Reporting Tells the Story for Recruiting Budgets

    September 23, 2019 | By NACE Staff

    Trends & Predictions
    Recruiting directors evaluate their budget.

    TAGS: compensation, operations, trends and predictions, surveys, benchmarks, spotlight, benefits

    Spotlight for Recruiting Professionals

    While the overall average recruiting budget for the 2016-17 recruiting year was $491,303, the way employers reported their budget numbers had a significant impact on the budget data, according to NACE’s 2018 Recruiting Benchmarks Survey Report.

    Nearly three-quarters (73.7 percent) of employers did not include personnel costs—staff salaries and benefits—in their reported budget. The overall average budget for respondents that included personnel costs was $1,088,783, while the average recruiting budget for respondents that did not was $272,813. (See Figure 1.)

    Recruiting budgets fluctuated by company size and region. Not surprisingly, larger companies—which were more likely to include personnel costs in their reported figures—reported larger recruiting budgets.

    By region, employers in New England reported the largest average budget at $1,201,364. The driver for this is the fact that the New England region is home to several larger companies that reported recruiting budgets in the millions of dollars. On the other hand, the Great Lakes region—where even the larger companies reported budgets that were much lower than those of similar size in the other regions—had the lowest average budget at $177,043.

    Data collection for NACE’s 2018 Recruiting Benchmarks Survey Report took place from June 20, 2018, to September 10, 2018; 218 firms participated. The 2018 Recruiting Benchmarks Survey Report is available free to members through MyNACE. An executive summary of the report is available through the NACE Store.

    Figure 1: Budget for 2016-17 recruiting year, by company size and region

      Mean Percentile 25 Median Percentile 75 Respondents
    Overall $491,303 $50,000 $150,000 $427,000 85
    Company size  
    500 or less-1,000 $79,167 $20,000 $45,000 $100,000 6
    1,001-2,500 $266,875 $27,500 $125,000 $422,500 8
    2,501-5,000 $319,118 $30,000 $50,000 $180,000 17
    5,001-10,000 $272,204 $70,000 $80,000 $427,000 13
    10,001-20,000 $542,941 $100,000 $250,000 $500,000 17
    >20,000 $873,214 $100,000 $225,000 $1,100,000 24
    Region  
    New England $1,201,364 $175,000 $250,000 $600,000 11
    Mid-Atlantic $454,000 $25,000 $100,000 $1,075,000 15
    Great Lakes $177,043 $30,000 $90,000 $300,000 18
    Plains $679,286 $100,000 $250,000 $1,000,000 7
    Southeast $251,214 $20,000 $120,000 $200,000 14
    Southwest $532,462 $50,000 $140,000 $345,000 13
    Rocky Mountains/Far West $479,286 $85,000 $150,000 $500,000 7
    Source: 2018 Recruiting Benchmarks Survey Report, National Association of Colleges and Employers