Our product engineering team is working on our unique Outplacement Solution. Our goal is to provide the best in class, innovative, technology driven workforce solutions that help companies manage their Rockstars better. We believe that this product will disrupt the outplacement industry, add exceptional value to outplaced resources, and in turn help Companies reduce their Human Capital costs.
We take workforce solutions seriously, and our product is centered on the most challenging aspects of the workforce solution ecosystem.
Some numbers that warrant action are listed below:
Total Annual expense for US Talent Acquisition: Bersin by Deloitte’s research (formerly Bersin & Associates) in 2011 on US companies that have 100 employees or more.
- Talent Acquisition Expense in 2011: $124 Billion, up 10 percent over 2010.
- Most expensive hiring method: Recruitment Agencies.
- Companies spent: 1/3rd of their recruiting budgets on agencies to fill just 8% of their positions.
- Average fees: 21% of first year salary.
- Average application for each entry level/hourly openings: 144.
- Average applications for each professional position: 89.
- The study also found that recruiters are overloaded with resumes, yet at the same time, companies are struggling to find quality candidates.
Dun & Bradstreet’s analysis states;
- Hiring cost for New Positions: First year an employee joins, the total cost may come to about 1.5 to 3 times the annual salary.
- Hiring cost for replacements: To replace any job position, a 150% average rate could apply.
Not to forget the cost of outplacement in the workforce ecosystem: Wall Street Journal in 2009 on the heels of the financial crisis published that;
- 58.5% receive outplacements for 1-3 months.
- 17.7% receive outplacements for 1-6 months.
- Cost of outplacement ranges from $10,000 to Sr. employees to $1,472 for hourly workers
Inc.com also states that outplacement Coaching and support last for one year at a cost of $1,000 to $25,000 paid for by employers.