Hire Rate
2022 National Average Value
27
%
What is the Hire Rate?
An organization’s Hire Rate, also known as Hiring Rate or Recruiting Rate, measures the number of people hired relative to the overall headcount. It can be an indicator of growth and/or high turnover and a useful measure of hiring efficiency.
What is the average value of Hire Rate?
According to the Saratoga Workforce Index, the national average Hire Rate in 2022 was 27%, meaning that there were 27 hires for every 100 employees. Some positions may be filled more than once per year.
What is Hire Rate by industry?
The median Hire Rate varies from about 18% to 31% across different industries. If you need Hire Rate for your industry, please contact us.
Where can I get Hire Rate benchmarks?
The annual Saratoga HR and Workforce Benchmarking Study releases the Hire Rate benchmark for over 20 different industries each year. The national average is released as part of the annual Saratoga Workforce Index.
How is Hire Rate calculated?
Hire Rate is calculated as the total number of candidates hired to fill open positions, divided by the total non-contingent headcount of the organization. It includes hires that accepted an offer but chose not to start but excludes acquisition hires, college interns, promotions or transfers that did not fill a requisition, and those that accepted an offer and were not allowed to start due to an issue such as a failed background check.
What does a low Hire Rate mean?
A low Hire Rate could indicate that the organization is not hiring many new employees relative to its total workforce. This could be due to various reasons such as low turnover, slow growth, or a freeze on new hiring. However, if the organization is experiencing high turnover or is in a growth phase and still has a low Hire Rate, it might indicate issues in the hiring process such as difficulty in attracting candidates, lengthy hiring process, or inability to match the talent to the appropriate roles.
What does a high Hire Rate mean?
A high Hire Rate can sometimes indicate growth or abundant churn in an organization. If an organization's Hire Rate is higher than that of similar companies, it can suggest that the organization may be either growing (hiring more employees) or experiencing a high level of churn (employees leaving and being replaced). If the organization is not expecting or seeing growth, an elevated Hire Rate may indicate a need to investigate turnover and its root causes such as employee engagement or inability to properly match talent to the appropriate roles.
What other benchmarks are relevant to Hire Rate?
Other relevant benchmarks include:
The annual Saratoga HR and Workforce Benchmarking Study provides data for over 1000 different HR metrics. Contact us to learn more.
About the Saratoga Workforce Index
The Saratoga Workforce Index is an indispensable reference of national averages of 30 commonly requested HR metrics. Based on PwC Saratoga’s annual workforce benchmarking study of over 1000 metrics spanning hundreds of companies and over 20 industries, the Saratoga Workforce Index is your “quick start” guide to workforce benchmarks.
Download the guide to see the national averages for all of these:
- 90 Day Total Turnover Rate
- Average Number of Direct Reports
- Cost per Hire
- Director Headcount Ratio
- Executive Headcount Ratio
- Finance FTE Ratio
- First Year of Service Turnover Rate
- General & Administrative Function Voluntary Separation Rate
- Hire Rate
- HR FTE Ratio
- Information Technology FTE Ratio
- Labor Cost Revenue Percent
- Layers
- Learning & Development Investment per Employee
- Legal FTE Ratio
- Management Headcount Ratio
- Manager Headcount Ratio
- Offer Acceptance Rate
- One to Three Years of Service Voluntary Separation Rate
- Promotion Rate
- Racial/Ethnic Minority Headcount Percent
- Racial/Ethnic Minority Promotion Rate
- Racial/Ethnic Minority Voluntary Separation Rate
- Revenue per FTE
- Time to Accept
- Time to Start
- Turnover Rate
- Vacancy Rate
- Voluntary Separation Rate
- Women Executive Headcount Percent
- Women Headcount Percent
- Women Promotion Rate
- Women Voluntary Separation Rate
Need industry-specific benchmarks?
We provide these values as a reference point for discussions. However, given the high variance across industries, sizes and revenue, these national averages should NOT be used to make important business decisions or used in any formal reporting.
If you intend to use benchmarks for business decisions, please join Saratoga as a full member so you can have access to more specific comparison groups for each industry, revenue, size, profit/non-profit status and more. With a full membership, you’ll have access to over 1,000 metrics that are much more accurate and specific than a national average. The membership process is relatively simple, mostly automated and reasonably priced with a clear ROI.
Referencing Saratoga Workforce Index Data
If you choose to refer to these metrics in any of your materials, whether internally or externally, we ask that you include the following statement:
Excerpted from the Saratoga Workforce Index. © 2023 PricewaterhouseCoopers LLP, all rights reserved. Data is for discussion purposes only and cannot be used for investment decisions or financial evaluations.
You may include up to five metrics in any internal or external publication without any additional permissions. Contact us at saratoga@pwc.com if you want to use more than five or would like to reproduce the Saratoga Workforce Index in its entirety.
About Saratoga
Saratoga workforce and HR benchmarks provide reference points for executive-level discussions, context for people dashboards, and data to inform workforce and HR decisions. Hundreds of companies across over 20 industries trust Saratoga each year to supply over 1,000 validated workforce benchmarks around turnover, diversity, staffing, productivity, efficiency, fairness, and more.
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